Why HSBC Says Jump in Aussie Trade Surplus Makes Sense

The video discusses Australia's trade surplus, driven by a recovery in coal exports after Cyclone Debbie and a rise in LNG exports. It highlights the volatility in iron ore prices due to Chinese steel restructuring. The discussion shifts to economic indicators, noting low wage growth despite a tightening labor market and rising corporate profits. The correlation between commodity prices and wage growth is explored, suggesting potential wage increases in the near future.

What was a major factor contributing to the recent trade surplus in Australia?

• Rise in tourism

• Decrease in import tariffs

• Rebound in coal exports after a cyclone

• Increase in agricultural exports

Which two commodities are highlighted as key drivers of Australia's current export story?

• Gold and silver

• Iron ore and wheat

• Coal and LNG

• Copper and aluminum

What is a significant uncertainty affecting the Australian trade picture?

• Volatility in iron ore prices

• Stability in global oil prices

• Decrease in foreign investments

• Increase in local manufacturing

What economic issue is the RBA currently facing in Australia?

• Surplus in government budget

• Record low wage growth and high household debt

• Rapid population growth

• High inflation rates

What is expected to support wage growth in Australia in the near future?

• Decrease in commodity prices

• Tightening labor market and increased corporate profits

• Reduction in government spending

• Increase in foreign aid