Australian Dollar Rides Out Broadly Stronger China Trade Data

Australian Dollar Rides Out Broadly Stronger China Trade Data

Talking Points:

  • Chinese trade data came in broadly stronger
  • However market reaction was muted
  • The trade spat with Washington may have rendered these numbers too historic to be of interest

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The Australian Dollar showed little reaction to a broadly stronger set of Chinese trader figures Friday, perhaps because the ongoing tariff spat between Washington and Beijing has rendered them less useful as a likely gauge to the future.

The overall trade balance for the first quarter came in at CNY326.18 billion (US$51.9 billion), hugely ahead of the CNY 181 billion expected. Imports soared by 11.7%, compared to the same period last year while exports’ 7.4% rise was below the previous quarter’s gain. These look like quite strong figures for the first quarter, with little obvious trade disruption evident from the long Lunar New Year break.

However, that trade dispute with the US could see these data series weaken into the next quarter, absent a resolution which seems elusive

Article source: https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2018/04/13/Australian-Dollar-Rides-Out-Broadly-Stronger-China-Trade-Data.html?DFXfeeds=forex:fundamental:forecast:weekly:aud