Australia's trade balance showed a significant improvement in October, lifting by A$5.95 billion, exceeding the $4.55 billion forecast.
Both exports and imports rebounded, moving into positive territory after sharp declines brought the trade balance to a four-month low in September.
The seasonally adjusted goods balance rose by $1.42 billion, driven largely by a surge in exports.
Goods credits (exports) climbed $1.46 billion, or 3.6%, bolstered by increased demand for “Metal ores and minerals”, which added $13.12 billion, or 0.5%.
On the imports side, goods debits saw a modest increase of $35 million, or 0.1%, primarily driven by a rise in “Processed industrial supplies”.
Rural goods, however, declined by $28 million or 0.5%, while "Other rural" goods contributed a $120 million drop, declining 4.7%.
Non-rural goods showed strength, rising by $413 million or 1.3%, with "Other mineral fuels" driving this growth, up by $875 million or 15.4%. Consumption goods grew by $98 million, led by a 2.8% rise in "Non-industrial transport equipment".
Capital goods fell sharply by $182 million or 2.1%, while, Intermediate and other merchandise goods rose $258 million (1.7%), supported by a strong performance in "Processed industrial supplies", up $277 million or 6.8%.
The data reflects a recovery in trade activity, with exports leading the charge amid strengthened demand for Australia's key commodities.
However, the decline in capital goods suggests a cautious approach to long-term investment.