China’s May Trade data (USD): Surplus – a big beat as imports plunge 16.7%
The China customs published Trade Balance for May in USD terms, reporting a bigger-than-expected increase in the trade surplus amid a sharp plunge in the imports.
In USD terms,
Trade Balance (USD) came in at +62.93B versus +39.0B expected and +45.34B previous.
Exports (YoY): -3.3% vs.-7.0% exp. and +3.5% last.
Imports (YoY): -16.7% vs.-9.7% exp. and -14.2% last.
The imports slump marked marking the sharpest decline since January 2016.
Market implications
The small-than-expected drop in exports is positive for the Chinese economy. Although a collapse in the imports could prompt some further policy support to boost the domestic consumption. Most global economies closed borders for trade due to the coronavirus-imposed lockdown.
The mixed data is unlikely to have a major bearing on the Chinese proxy, the AUD. The AUD/USD pair settled the week below the 0.7000 level.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
