Investing.com-- Australia’s trade balance rose more than expected in October after hitting a four-year low in the prior month, as commodity exports rose amid improving economic conditions and stimulus measures in top trading partner China.
Trade balance rose to a surplus of A$5.95 billion ($3.83 billion) in October, data from the Australian Bureau of Statistics showed on Thursday. The reading was stronger than expectations for a surplus of A$4.58 billion, and higher from the A$4.61 billion seen in the prior month.
Overall exports rose 3.6% month-on-month in October, driven by a higher demand of mineral fuel exports. Metal ores and minerals, which are the country's biggest exports, rose 0.5% during the month.
The improved export readings come amid improving economic conditions in China, Australia's biggest export destination. Beijing mobilized a slew of aggressive stimulus measures in the past two months, with recent data indicating a pick-up in Chinese business activity.
Australia's stronger trade balance was also driven by soft imports, as local demand for overseas goods remained weak. Australian imports inched 0.1% higher month-on-month in October, on higher demand for processed industrial supplies.