Data released by Australian Bureau of Statistics (ABS) has confirmed that Australia will post a second consecutive trade surplus for the month of May. This is despite the fact that there is strong demand for exports from both the consumers and businesses. 

It also pointed that demand for new motor vehicles remains strong despite concerns like increasing interest and a negative sentiment in the consumer, as well as, the business market. 

Australia posted its first monthly trade surplus in more than a year in the month of April. This was mainly due to an 11% increase in exports and also the coal and iron ore prices.

But experts feel that increase in imports during the month of May will ensure that another surplus will not be created in the coming month. The increase in commodities imports also     included increase in the prices of capital, as well as, the consumption goods.

Experts feel that the increase in imports could also lead to higher prices of the Australian dollar in the coming days. The monthly trade report for the month of May will be revealed on July 6.     

Positive news from China will also help Australia and especially the Companies exporting to the Chinese market. It is expected that the increase in the prices of the Chinese currency will also benefit Chinese businesses, considerably.