Australia Trade Surplus Narrows in July

Australia’s trade surplus narrowed to AUD 1.93 billion in July 2026 from an upwardly revised AUD 2.34 billion surplus in the previous month, but surpassed market expectations of an AUD 1.40 billion deficit, as exports fell more than imports. Imports fell 2.5% month-on-month to a five-month low of AUD 44.34 billion, reversing an upwardly revised 0.7% drop in June, mainly due to lower imports of fuel and lubricants amid weak domestic demand. Meanwhile, exports dropped 3.3% month-on-month to AUD 46.26 billion in July, reversing a downwardly revised 9.1% surge in June, primarily driven by lower shipments of non-monetary gold and coal, coke, and briquettes.

Australia unexpectedly posted a trade surplus of AUD 1.93 billion in June 2026, recovering from a downwardly revised AUD 2.37 billion deficit in the previous month and defying market expectations of an AUD 1.1 billion deficit, as exports rose while imports fell. Exports grew 9.6% month-on-month to an over-three-year high of AUD 47.70 billion in June, rebounding from an upwardly revised 7.6% decline in May. The increase was primarily driven by non-monetary gold amid higher global energy and commodity prices, reflecting the impact of the Middle East conflict and disruptions in the Strait of Hormuz. Meanwhile, imports edged down 0.2% month-on-month to AUD 45.77 billion, reversing an upwardly revised 0.9% increase in May, mainly due to lower imports of fuel and lubricants amid weak domestic demand.

Australia unexpectedly posted a trade deficit of AUD 3.02 billion in May 2026, shifting from a downwardly revised AUD 1.38 billion surplus in the previous month and defying market expectations of an AUD 2.2 billion surplus. It was the second trade deficit so far this year and the largest since December 2015, as exports fell while imports rose. Exports dropped 6.9% month-on-month to a four-month low of AUD 43.61 billion, reversing a 7.2% increase in April, primarily weighed down by non-monetary gold and metal ores and minerals. Meanwhile, imports grew 2.6% month-on-month to a record high of AUD 46.63 billion, accelerating from a downwardly revised 0.2% increase in April, reflecting stronger domestic demand, driven by imports of cars, aircraft, and data centers, amid higher fuel prices.