Australia Posts Biggest Trade Deficit Since 2015 as Gold, Iron Ore Exports Slump

Australia’s May trade data showed a sharp deterioration in external accounts, with the goods trade balance swinging to a AUD 3.02 billion deficit from a revised AUD 1.38 billion surplus in April and far worse than the AUD 2.18 billion surplus expected. The miss was driven by a 6.9% month-on-month fall in exports after April’s surge, led by steep drops in non-monetary gold exports (-35%) and iron ore exports (-9%). Imports rose 2.6% month-on-month, adding to the shortfall. For markets, the report underscores weaker commodity export momentum and highlights Australia’s vulnerability to swings in resource shipments, a potentially negative signal for the Australian dollar and commodity-linked sentiment.