An interesting piece of information arising from yesterday’s Chinese data dump was the increase in imports from Australia, which grew by 10.9% in the month of August and by 2.9% over the year.
A chart tracking Chinese imports from Australia (in USD) against Australian exports to China (in AUD) is shown below:
Based on this chart, we might expect August’s international trade data – due for release by the Australian Bureau of Statistics next month – to show a nice bounce in exports to China, which seemingly contradicts the recent sharp deterioration in the iron ore price – Australia’s biggest export to China. Some mix of volume growth and contract pricing delaying price falls make this possible.
Looking forward, the situation will deteriorate.
Latest posts by Leith van Onselen (see all)
- Weekend Reading: 15-16 February 2020 - February 15, 2020
- Another commentator calls for stamp duty/land tax switch - February 14, 2020
- Farm lobby slams Sydney Uni research showing less need for migrants - February 14, 2020