Australia Trade Surplus Shrinks to A$495 Million as Imports Surge to Record High

Australia's August goods trade surplus narrowed sharply to A$495 million (AUD 0.50 billion), missing consensus forecasts of A$2.0 billion and hitting its lowest level since May. Following the release, the Australian dollar weakened toward $0.69 to an 11-week low, while the S&P/ASX 200 fell 1.4% to 8,669. The narrowing resulted from a 5.8% month-on-month surge in imports to a record AUD 46.94 billion, led by a 79% jump in data center equipment. Although exports grew 3.7% to a 41-month high of AUD 47.43 billion, they failed to offset import growth.