Chinese Q1 trade data showed showed a stark rise in imports growth
Eamonn had the data earlier here. Import figures came in at +11.7% y/y in yuan terms, and +14.4% y/y in dollar terms.
While the positive impact on the import figures can be seen clearly from a trade perspective - since Australia is one of China's main exporters - there is also a sort of indirect impact that has helped to boost the aussie.
The fact that China's imports remain solid and growing at a pace better than previous years (2015 and 2016), highlights how much China still relies on consumption and purchases.
And that means Chinese authorities should not really want to favour a weaker Chinese yuan as it would create a burden at the consumer level - weaker currency meaning more expensive imports.
The aussie does tend to react to any sort of "revaluation" in the yuan as seen here, so the fact that imports are still growing at current levels mean that there is a lower likelihood of Xi Jinping opting to devalue the yuan as a tool against the US in trade.
