The U.S. international trade deficit shrank in August due to lower oil and consumer goods imports. Petroleum import was $16.5 billion compared to $17.8 billion the previous month. on the other hand the non petroleum gap expanded to $24.3 billion from $23.6 billion in July. Overall, the August trade data show modest improvement in real terms. To me drop in imports reflects the U.S. economy stuck in the mud and there is a long way to go before we could say we are out of recession. Exports however, did rise due to weak dollar, largely on industrial supplies, services, and auto shipments to Canada. The U.S. trade gap narrowed to $30.7 billion from a revised $31.9 billion in July. Exports improved by 0.2% while imports fall by -0.6% ,please note drops in import shows a very weak consumer consumption.
Exports were up 0.2% .
Goods exports -1.6% .
Imports improved to -28.6% from -30.3% the prior month.
Price of imported oil rose to $64.75 per barrel from $62.48 in July.
Year-on-year, overall exports rose by 6.75% to -20.7% from -22.2% in July while imports improved to -28.6% from -30.3% the prior month.
Technicals look perfect to continuation of rally, to me +60% rally look bubbly ,market priced for perfection and fundamentals could not justify the rally ,but as you know market is irrational, therefore enjoy the rally while it lasts.