The index represents overall number of trade operations in Australia.
Balance of trade, is a difference between the value of manufactured and shipped out of country (exports) and brought into the country (imports) production. The positive balance of trade is referred to a trade surplus while the negative balance is a trade deficit.
Effect of market
It has a moderate influence on the Australian Dollar dynamics. In general, the index growth or the actual value raise exceeding the forecast is a positive sign for the Australian currency.