About that China trade data on Tuesday - less upbeat than meets the eye

Author: Eamonn Sheridan | Category: News

Capital Economics have a piece on the data from China yesterday

CE not impressed:
  • less upbeat than meets the eye
  • more a reflection of base and price effects than of current strength
  • And while the outlook for exports is improving, domestic demand will remain subdued. 
But ...
  • Looking ahead, a gradual recovery in GDP growth among China's trading partners should help to put a floor beneath exports this year. 
  • The "Phase One" US-China trade deal due to be signed this week will also help at the margin. Import growth may not rise much further, however, given the continued headwinds to domestic demand. 
  • Instead, any step up in imports from the US as a result of the trade deal will probably come at the expense of imports from elsewhere.

I bolded that bit … OZ and NZ might want to take note …. 
ForexLive
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose