Australia unexpectedly swung into a AUD 3.02 billion trade deficit in May 2026, defying consensus market forecasts of an AUD 2.2 billion surplus. The sharp reversal follows a downwardly revised AUD 1.38 billion surplus in April, marking the nation's second trade deficit of the year and its widest since December 2015. Total goods exports tumbled 6.9% month-on-month to a four-month low of AUD 43.61 billion, entirely erasing April's 7.2% gain, driven by lower shipments of non-monetary gold, metal ores, and minerals. Total goods imports climbed 2.6% month-on-month to a new record high of AUD 46.63 billion, accelerating from a revised 0.2% uptick in April on the back of resilient domestic consumer demand. The S&P/ASX 200 Index dropped 41 points to 8,680 in early trading, its third consecutive daily decline, while the Australian dollar remained under pressure below the $0.690 handle near a three-month low.