Analysts at TD Securities note that Australia’s trade surplus for July staged a small drop to A$7.268b from A$7.977b in June, the outcome essentially in line with expectations.

• “Exports rose 1%, thanks to a +0.5% rise in service exports, offsetting partially some of the declines in iron ore exports -0.8% and 9% drop in coal exports.
• Import values rose 2.9%/m, driven in part by higher consumption goods. The first print for the 3rd quarter suggests net trade should add to Q3 GDP but is unlikely to exceed the 0.6% pt contribution to Q2 GDP seen earlier this week.”