What this means for Australia’s export outlook
Real resources and energy export values are expected to jump almost 10% this financial year. That’s a product of both higher prices and volumes—Australia is expected to ship 8% more iron ore and 40% more LNG. Combined with expectations for higher US interest rates, this is likely to limit the drag on the AUD in 2017. So while the rebalancing of Australia’s export profile is expected to continue, the pace of the persistent upward march of services exports (Chart 4) may be more difficult to match in 2017.