China’s Trade Balance for June, in Chinese Yuan (CNY) terms, arrives at CNY859.05 billion, widening from the previous figure of CNY723.98 billion.
Exports surge 20.8% year-over-year (YoY) in June from a 13.8% increase seen in May. The country’s imports surge 29.4% YoY in the same period vs. 21.5% recorded previously.
In US Dollar (USD) terms, China’s Trade Surplus rise more than expected in June. Trade Balance arrived at +125.62B versus +121B expected and +105.43B prior.
Exports (YoY): 27% vs. 18.2% expected and 19.4% last.
Imports (YoY): 36% vs. 24% expected and 27.4% previous.
Market reaction to China’s Trade Balance
The Australian Dollar (AUD) faces slight selling pressure following China’s Trade Balance data release. As of writing, AUD/USD trades flat at around 0.6922. The pair has been consolidating since opening.
Economic Indicator
Trade Balance CNY
The Trade Balance released by the General Administration of Customs of the People’s Republic of China is a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. It is an event that generates some volatility for the CNY. As the Chinese economy has influence on the global economy, this economic indicator would have an impact on the Forex market. In general, a high reading is seen as positive (or bullish) CNY, while a low reading is seen as negative (or bearish) for the CNY.
