The Australian Bureau of Statisitics said the trade deficit for goods and services in November was a seasonally-adjusted 1.73 billion dollarsbillion US), up slightly on October's 1.702 billion dollars.

Analysts had expected the deficit to narrow to 1.6 billion dollars.

The ABS said rural goods exports fell five percent, while goods and services exports fell one percent.

Goods and services imports were effectively flat. Imports of consumption goods was down two percent and capital goods imports rose eight percent.

The drought meant cereal grains and cereal preparation exports were down 19 percent.

Commsec analyst Carlos Castillo said there was little prospect of a short-term fall in the deficit.

"Analysts are not expecting an improvement in that deficit until we see a vast improvement in the agricultural sector and an acceleration of growth in the international economy," he said.

"What does it mean going forward? It's unlikely to affect the Reserve bank's decision on interest rates next month. Most people are already factoring in a rise in interest rates in either February or March."

TERRA.WIRE