China: Exports stabilise but uncertainty clouds yuan – ING
Iris Pang, economist at ING, notes that China’s exports contracted 0.9% year-on-year in October after contracting 3.2%YoY in the previous month.
Key Quotes
“Some export items experienced clear growth on a monthly basis, for example, automatic data processing parts and products (+14%MoM). This could be a result of increased smartphone orders. But exports may contract again in November and December, as exports for Western holidays will have already been shipped.”
“Imports contracted 6.4%YoY in October after an 8.3%YoY contraction in September.”
“The market has reacted positively to the news about a potential phase one deal, especially the possible rollback of tariffs imposed in September on $112 billion of goods.”
“We think USD/CNY will reflect these uncertainties once the market realises that the phase one deal is not a one-way bet.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
