Taking a Fundamental Approach to Forex Trading

Trading the Aussie with Australia Trade Balance

Australia Trade Balance is a key economic indicator released monthly in Canberra by the Australian Bauru of Statistics (ABS). The publication is a preliminary estimate of Australia's international trade in goods and services on a balance of payment basis and merchandise imports and exports on a recorded traded basis. When the value of net exports exceeds the value of net imports, a trade surplus is created; and when the value of imports exceeds the value of exports, a trade deficit is created.

Australia Main Exports Commodities	Australia Main Exports Partners
Coal	Japan 19.6%
Gold	China 12.3%
Wheat	S. Korea 7.5%
Meat	US 6.2%
Machinery	India 5.5%

Australia Main Imports Commodities	Australia Main Imports Partners
Machinery	China 14.4%
Computes	US 14.1%
Telecommunication equipment	Japan 9.6%
Crude oil	Singapore 6%
Transportation equipment	Germany 5.1%

Impact on the Australian Dollar
Calculated in millions of Australian dollars, the Australian trade balance has a direct influence on the potential fluctuation of the Australian dollar, also known as the Aussie. Currency traders should follow the monthly change in the deficit. A widening or expanding deficit would weaken the Aussie; while a shrinking or narrowing deficit would strengthen the Aussie against its counterparts.