By James Glynn
SYDNEY--Australia posted a seasonally adjusted trade deficit of A$1.68 billion in June, representing the third large deficit in a row as global commodity prices sagged and the Australian dollar remained high.
The June deficit was narrower than analysts' expectations of a A$2.0 billion trade gap. It compared with an upwardly revised deficit of A$2.04 billion in May, the Australian Bureau of Statistics said Tuesday.
Imports fell 1% in June, while exports were unchanged.
Australia's trade balance has slipped back into deficit in recent months as prices of bulk commodity exports such as iron ore and coal have fallen. Iron ore prices are currently 29% below levels at the start of January, while coal prices have been dragged down by slowing Chinese demand.
The deterioration in the trade balance comes despite a sharp rise in export volumes as new mines have started up following a decade-long resources investment boom.
The Reserve Bank of Australia, the country's central bank, is expected to note the high currency after a policy meeting later Tuesday. RBA Governor Glenn Stevens recently described the currency as overvalued.
-Write to James Glynn at email@example.com
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August 04, 2014 21:52 ET (01:52 GMT)
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