Australian posts largest current account deficit since 2016 | investingLive

• Prior was -13.7B (revised to -16.15B)
• Net exports contribution -0.% vs -0.1% expected

• Goods and Services Balance: +$2.49bn vs +$2.78bn prior

• Net Primary Income: -$18.69bn vs -$18.99bn prior.

• Terms of Trade: +0.3% q/q.

This is the worst reading since 2016. The ABS notes that the fall was led by the net secondary income deficit widening, though this was partially cushioned by an improvement in net primary income.

For traders eyeing tomorrow’s Q3 GDP print, the key takeaway here is the net export contribution. The balance on goods and services is expected to detract 0.1 percentage points from the headline growth figure. It’s not a massive drag, but it’s a headwind nonetheless for the Australian economy. The consensus tomorrow is +0.7% q/q and +2.2% y/y.