SYDNEY - AUSTRALIA posted a record trade surplus of nearly A$3 billion (S$2.96 billion) in October, buoyed by a jump in exports and the decline of its currency, official figures showed on Thursday.

The seasonally adjusted A$2.95 billion surplus was larger than expected thanks to a seven percent surge in the value of exports, including a 20 per cent leap in coal shipments, according to the Australian Bureau of Statistics (ABS).

Imports were flat in October and economists said the falling in the value of the Australian dollar boosted the value of exports, more than off-setting a sharp drop in commodity prices.

Economists had expected a trade surplus of A$1.6 billion for the period.

Australia's international trade position has been in the black by more than A$1 billion for three months in a row, after failing to record any surplus at all for six years as the economy boomed.

The Australian dollar has fallen more than 30 per cent against the US unit since July, with strong fluctuations recorded in October.

Economists said the falling value of the 'Aussie' would cushion the country's economy, which is slowing rapidly as the global financial crisis takes its toll on consumer and business confidence.

But the data was not all good. The ABS also revealed that building approvals fell by a seasonally adjusted 5.4 per cent in October to 10,730 units - 26 per cent lower than a year earlier.

Economists had forecast a 0.7 per cent increase.

The government has unveiled a A$10.4 billion economic stimulus package to prevent the economy from going into reverse and has signalled it is prepared to do more if necessary.

Figures released on Wednesday showed the economy grew by a paltry 0.1 per cent in the third quarter, its slowest growth in eight years, with a year-on-year expansion of 1.9 per cent. -- AFP