FX.co ★ Australia Trade Surplus Smallest in Near 5 Years

Australia's trade surplus for goods narrowed significantly in May 2025, reaching AUD 2.24 billion. This figure represents a sharp decline from the revised figure of AUD 4.859 billion recorded in April and falls below the market's expectation of AUD 5 billion. This marks the smallest trade surplus observed since August 2020, attributed to a decrease in exports alongside an increase in imports. Exports fell by 2.7% compared to the previous month, hitting a three-month low of AUD 42.40 billion. This decline follows a similarly adjusted 2.7% drop in April, with shipments to the United States particularly affected by tariffs imposed during Trump's administration, resulting in a 5.5% decrease. On the other hand, imports experienced a rise of 3.8%, achieving a record high of AUD 40.16 billion, which represents an acceleration from the upwardly revised increase of 1.6% in April.