Australian trade balance turned to deficit

Australian trade balance shifted back into the red in the middle of summer, as exports were flat, while imports soared. The Australian Bureau of Statistics said the difference between the number of exported and imported goods and services stood at -$765 million in July, following a surplus of $243 million a month earlier. While analysts claimed for a surplus of $100 million, they also pointed out the deficit should be temporary and the figure will turn into green as soon as resource exports increase. The report also showed the minor increase in exports ($54 million to $26,202 million) was more than offset by a $1,062 million jump in imports, which added 4% totalling $26,967 million, mostly on the back of merchandise goods and intermediate. Taking into account recent depreciation of the Aussie against its major peers, weak demand for Australian goods and services we could suggest the negative tendency will persist. However, several economists are saying it is too early to think it is the beginning of a trend, explaining latest figures as an unfortunate part of the volatility of the trade data. Another challenge is on the rise for Canberra amid growing tensions in Syria. Current Prime Minister Kevin Rudd tried to exploit it to highlight opponent's inexperience in world affairs. And even though Tony Abbott from the center-right Liberal Party is expected to win the election on September 7, the most critical choice for the country is not between two candidates, it is about choosing between China and the U.S.