AUDUSD Export price index fell 3.1% this quarter and 10.7% through the year.
Import price index rose 0.8% this quarter and fell 2.4% through the year.
Most Vital
Exports yearly drop 10.7%
Imports Yearly drop 2.4%.
Above pretty much looks like every central bank on the planet except for Japan. In the United States, Imports beat Exports every month since 2020. How is such a disaster fixed. All nations desperately require lower interest rates to right size imports to exports.
What I always worried is trade wars between nations such as occurred in the 1930’s.
The Glue and driver that holds Exports and Imports is Producer Prices and pretty much the same economic indicator for all nations. True for Australia, Japan, New Zealand, United States and assumption for GBP, Canada, Europe.
This doesn’t cover how Inflation and GDP is seen miles in advance but here’s Australia = The Stage of Production indexes inform on inflationary trends by an economic categorization of transactions according to their sequencing in the production chain.
Simplified. Producer Prices from early pricing to monthly imports and exports sees Inflation in advance. Australia gladly shows every last detail to trade in many, many pages except for most vital Calculations.
Australia Imports sees higher Inflation, lower GDP unless Exports rise above Imports.
Brian Twomey
Tianzuida ON TRADING 