October trade balance data for China
China trade balance: surplus of $61.4bn
- expected +$62.0bn, prior was 60.34bn
Exports -6.9% y/y
- expected -3.2%, prior was -3.7%
Imports -18.8% y/y
- expected -15.2%, prior was -20.4%
More evidence for the slowdown in China's economy, with imports falling harder than expected. This will rekindle concerns on domestic demand in the country. Maybe the recent cut in rates will kick in next month?
An economic boost from exports looks pushed further back, with y/y exports coming in well under expected. The export data underscore concerns over global growth we've been seeing for a good while. Looking at the data by three huge regions doesn't give much optimism:
- Exports to the US down 0.9% y/y
- To the UE, down 2.9%
- To Japan down 7.7%
You can expect this to be a negative for the AUD on Monday morning.
