In Feb 2011 Australian Bureau of Statistics reported about Australia’s balance of trade deficit being equal to $205M, which turned out to be unexpected news for market participants as they had expected to see $1,2B surplus. The balance of trade, as a GDP component, indicates the correlation between a nation's imports and exports. The Feb data showed a 5% import increase and a 2% export decline.
It is the 1st decline since March 2010. Unfavorable weather conditions damaged the infrastructure of the Eastern part of Australia, including the coal industry of Queensland. Economists are sure that the balance of trade will definitely reach a surplus as soon as the export of coal is resumed. However, the terms are unclear.
Nevertheless, there are no reasons to worry as Australia’s external trade is at its peak over the last 60 years: iron ore and coal are (and will be) in extreme demand shown by the Asian market. In long-term perspective the demand for these raw materials will only grow while the growing export revenues will make the balance of trade value positive.
FOREX. AUDUSD declined after the negative mews on the balance of trade. Experts of the Department of studying Masterforex-V trading system report that the currency pair has finished the formation of wave a(C ) or C of Daily 2 and is currently forming wave b(C ). The downtrend may continue through wave c(C ) and bullish FZR. 1,0416 will act as a resistance level. However, if the MF pivot and MF sloping channel are broken below the price will initiate a bearish momentum of Daily 4. Its “Moment of Truth” will indicate a possible mid-term reversal in the form of a correction ABC pattern. The sloping channel and the level of 1,0065 will turn into support levels.
