Australia Posts Smallest Trade Surplus in 3 Months

Australia’s trade surplus narrowed to AUD 0.50 billion in August 2026 from a downwardly revised AUD 1.35 billion surplus in the previous month, and was far below market expectations of an AUD 2 billion deficit. It was the smallest trade surplus since May, when the trade balance posted a deficit, as exports rose less than imports. Imports grew 5.8% month-on-month to a record high of AUD 46.94 billion, after a downwardly revised 2.4% drop in July, driven by ADP equipment and non-monetary gold. Meanwhile, exports rose 3.7% month-on-month to a 29-month high of AUD 47.43 billion in August, rebounding from a revised 3.6% fall in July, primarily boosted by higher exports of non-monetary gold and coal, coke, and briquettes.

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.