The trade balance is exports minus imports of goods and services. The current account adds income paid to and received from overseas. A deficit means the country is borrowing from, or selling assets to, the rest of the world.
Australia usually runs a trade surplus in goods when commodity prices are high, but has historically run current account deficits because of income paid to foreign owners of Australian assets and debt.
Why it matters
A persistent current account deficit must be funded by foreign capital, which makes a currency sensitive to shifts in global investor appetite.
