Trade numbers point north

A lift in Western Australia's merchandise exports to China of nearly $700 million from October to November helped Australia record its first trade surplus in three years, but more could be on the way this year.

Nationally, exports exceeded imports by around $1.24 billion in seasonally adjusted terms, according to the Australian Bureau of Statistics.

That compared to a deficit of $1.1 billion in October and brought the 12 month rolling balance to $23.8 billion, well down from $28.6 billion in the year to November 2015.

Western Australian merchandise exports rose $421 million for the month in unadjusted terms, to $9.4 billion.

Exports from WA to Hong Kong fell $690 million after an unusually large number in October.

Breaking the numbers down by commodity, the ABS said iron ore lump exports were up 12 per cent month on month to about $1.4 billion, while fines were up a similar amount to about $3.6 billion.

Commsec chief economist Craig James said a lot was going right for the trade balance at the moment.

"It is the double whammy, stronger commodity prices and a low Australian dollar, that has resulted in such a accelerated improvement of the trade accounts.

"Not only is mining production at record highs, but iron ore, coal and metal prices have soared in recent months.

"The Aussie dollar has also weakened from highs near US78 cents in early November to US72-74 cents currently, providing further assistance to exporters.

"Looking ahead, recent gains in oil, iron ore and coal prices are still to fully feed through to export receipts.

"Exports of liquefied natural gas will also lift over the year.

"And the record winter crops that will be harvested and exported over 2017, will further add to export receipts.

"Trade surpluses are clearly on the cards in 2017."