The exports of goods and services increased by A$1,442m (4%).
Non-rural goods exports increased by A$1,316m (5%), with the export of rural goods and non-monetary gold rising by A$46m (1%) and A$22m (1%) respectively.
Net exports of goods under merchanting fell by A$1m (5%).
Service credits increased by A$58m (1%).
The imports of goods and services increased by A$515m (1%).
Capital goods imports increased by A$348m (5%).
There were also increases in the imports of non-monetary gold and intermediate and other merchandise goods of A$68m (17%) and A$66m (1%) respectively.
Consumption goods imports fell by A$73m (1%).
Service debits rose by A$107m (1%).
The Aussie Dollar moved from $0.6891 to $0.69908 upon release of the figures, which preceded China’s service sector PMI figures.
Out of China
The Caixin Services PMI fell from 52.7 to 52.0 in June. According to the latest Caixin China Survey ,
Service sector companies reported a moderate pickup in new work in June, supported by state policies. Increased client spending also contributed.
Employment levels remained unchanged, while the amount of work-on-hand continued to fall.
Operating costs were on the rise, with higher staff expenses and increased purchasing activity contributing.
Service sectors increased selling charges at the fastest pace in 3-months.
Service companies remained strongly optimistic about the economic outlook.
At composite level, however, optimism fell to a record low, weighed by the manufacturing sector.
China’s Caixin PMI fell from 51.5 to 50.6 in June, its weakest level since last October.
The Aussie Dollar moved from $0.69908 to $0.69902 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.03% to $0.6992.
At the time of writing, the Kiwi Dollar was up by 0.13% to $0.6682, with the Japanese Yen up by 0.28% to ¥107.58 against the U.S Dollar.
Risk off sentiment through the earlier part of the day contributed to the moves, dampening the effects of positive numbers out of Australia.
The Day Ahead:
For the EUR
It’s a particularly busy day ahead on the economic data front.
Spanish and Italian service sector PMI numbers are due out ahead of finalized French, German and Eurozone service sector PMI numbers.
We can expect the markets to focus on the Eurozone’s composite. While Germany and Italy’s manufacturing sectors are key to growth, service sector activity has provided much-needed support to the Eurozone economy.
Weak numbers would certainly weigh on the EUR.
At the time of writing, the EUR was up by 0.05% to $1.1291.
For the Pound
The UK services PMI is due out later this morning. We can expect the Pound to respond to the numbers.
Uncertainty over Brexit is expected to weigh on the economy in the 2 nd quarter. Weak numbers would further tame any hawkish chatter from the BoE near-term.
Outside of the stats, the leadership race will also remain in focus.
At the time of writing, the Pound was down by 0.01% to $1.2592.
Across the Pond
It’s a busy day ahead on the economic calendar, while it’s a half day for the markets ahead of tomorrow’s 4 th July holiday.
Key stats due out of the U.S include June ADP nonfarm employment change figures and May trade data in the early afternoon.
Later in the day, factory orders and finalized Markit service sector PMI and the ISM’s June Manufacturing PMI are due out.
We can expect the ISM June manufacturing PMI and ADP numbers to be the key drivers on the day.
Outside of the stats, geopolitical risk will continue to be a key driver mid-week.
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