Australia Q4 CAD smallest since 2001

Rally in iron ore, gold and other commodity prices has worked wonders for Australian economy. The nation’s current account deficit (CAD) narrowed in December quarter to its lowest level since September 2001, the data released today showed.

The deficit tanked 62% in seasonally adjusted terms to $3.853 billion. The narrowing of the trade deficit is expected to add 0.2% to Aussie Q4 GDP report, due for release tomorrow.

The upbeat CAD figure is good news, but it remains to be seen if it is good enough to push the AUD/USD pair above the 0.77 handle.