Australia’s Current Account deficit widened to -A$1.7 billion in the fourth quarter as imports gained 2 percent from the three months through September, driven primarily by purchases of foreign-made industrial transport equipment and oil. Exports fell 1 percent, driven by declines in overseas sales of grains and coal, the latter of which declined by a hefty 10 percent. The outcome reflects continued expansion in Australia’s booming mining sector, although lackluster Chinese Manufacturing PMI figures may bode ill for demand going forward. Indeed, a report released today showed that a slowdown in output and orders made for the largest decline in the pace of Chinese industrial-sector growth in 15 months, sending the Australian Dollar sharply lower. Australian mining firms count on China as their top overseas trading partner.
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