InvestSMART’s Evan Lucas says forecasts anticipate Australia’s trade balance “will be on the surplus side of about $700 million” which is positive, but “significantly lower than we’ve been averaging per month”. “Iron ore is still flowing to China even with all the spats on the political side,” Mr Lucas told Sky News.
“China is still taking our iron ore and also our coal,” he said.
Prices have also remained relatively higher than expected, at about $85 USD per tonne.
The Australian Dollar has also been significantly lower than usual, which has helped on the value side.
“The catch though is we are seeing other parts of the trade balance under real pressure.
“Things like education and tourism.”
The trade balance figures are due to be announced about 11:30am AEST Thursday.
Image: AP
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