Action Insight Daily Report 4-5-11

Australia dollar is mildly lower in Asia today after data showed the country unexpectedly recorded the first trade deficit in almost a year. Also, RBA left rates unchanged and published a rather balanced statement. Trade balance swung from revised AUD 1.43b surplus in February to AUD 0.21b in January and ended a 10 month run of surplus, which was the longest streak since 1972-73. Exports posted a second straight month of contraction as intense flooding across Queensland hampered coal exports. Meanwhile, the Japan's disaster would probably hamper Australian exports in the coming months but would at least be partially offset by surge in commodity prices.