Australia: Better than expected terms of trade - TDS

Research Team at TDS, notes that the Australia’s September quarter terms of trade was better than expected as export prices surged by 3.5% (vs mkt +2.8%) and import prices posted a growth of –1.0%. 

Key Quotes

“Export prices likely buoyant for Q4 as the coal price boom is incorporated.  RBA has no case to talk down the AUD just now.  So far, we see Q3 exports being all prices and flat volumes, good for the current account but not so good for GDP.”