Australia's trade performance has deteriorated further with the deficit blowing out to $3.1 billion in August - 11 per cent wider than the July figure of $2.8 billion, which had been revised up from $2.5 billion, and far weaker than the market expected.

The Australian dollar fell sharply on the news, dropping from 70.9 US cents to 70.7 US cents.

The value of exports in seasonally adjusted terms fell $130 million and was dragged down by a 19 per cent — or $316 million — fall in gold exports.

Rural exports rose by just 3 per cent for the month.

Imports rose 1 per cent in August, with significant falls in the value of industrial equipment and aircraft arriving offsetting a 24 per cent rise in fuel imports.

Market Economics managing director Stephen Koukoulas said the deficit was big and a little uncomfortable.

"I would have hoped with the currency at 70 cents [against the US dollar] we would have been a bit more competitive," Mr Koukoulas said.

"With a falling currency and export volumes doing OK, it should have been better but imports haven't slowed down.

"The inference is the dollar still hasn't fallen far enough."

UBS economist George Tharenou said the trade deficit remained around the worst on record, as lower commodity prices depressed export values and the sharp depreciation inflated imports.

"However, our preliminary estimates show that this disguises the likely ongoing booming pace of exports volumes," Mr Tharenou said.

"Hence, net export volumes are set to add strongly to third quarter real GDP growth."