Australia’s trade surplus widens to A$7.31B in July; exports hit 21-month high

Australia's trade surplus expanded significantly in July, reaching A$7.31 billion. The surge was driven by rising exports, which increased by 3.3%, combined with a decline in imports, which fell by 1.3%.

Australia’s goods exports rose by 3.3% month-over-month to a 21-month high of AUD 46.02 billion in July 2025, following an upwardly revised 6.3% decline in June.

Australia’s goods imports dropped 1.3% mom to a three-month low of AUD 38.71 billion in July 2025, after a downwardly revised 1.5% decline in the previous month, amid sluggish domestic demand and worries over global trade disruptions from U.S. tariffs.
[Australian Flag and Economic Downturn With Stock Exchange Market Indicators in Red]
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At the same time, household spending climbed 5.1% year-on-year in July, the highest growth since November 2023, following a 4.6% rise in June.

On Wednesday, RBA Governor Michele Bullock warned that further interest rate cuts may be unlikely if consumer spending continues to rise rapidly.

The S&P/ASX 200 Index [https://seekingalpha.com/symbol/AS51#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] climbed 0.8% to above 8,805 on Thursday, snapping a four-session losing streak, as heavyweight miners and gold stocks advanced on firmer commodity prices. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] was little changed at around $0.654 on Thursday, holding its recent gains, supported by stronger-than-expected trade balance figures.

ETFs: (NYSEARCA:EWA [https://seekingalpha.com/symbol/EWA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:FXA [https://seekingalpha.com/symbol/FXA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:FLAU [https://seekingalpha.com/symbol/FLAU#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]).

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