Australian Dollar, Yuan Lower After Soft China Trade Figures
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- China Trade Balance Unexpectedly Came in At $3.08 Billion; Lower than previous Figure’s $60.6 Billion
- Aussie, Kiwi, & the Offshore Yuan are Broadly Lower versus the US Dollar; Shanghai Comp Pare Gains
- Have Economic ReleasesDirectly on Your Platform’s Charts with theDailyFX News Applications
China’s Trade Balance unexpectedly came in at $3.08 Billion, worse than the $40.10 Billion expected by economists. The figure was lower than the $60.62 Billion Dollars recorded in February. Exports contracted by 15% year on year (YoY) while imports contracted by -12.7% y/y.
The US Dollar rallied against the offshore Yuan by over 80 pips. The Australian Dollar and the New Zealand Dollar extended losses against major currencies. The currencies downward move tracked a downward movement in the respective countries’ 10 year government debt yields, a proxy for monetary policy. The two countries are highly trade dependent on China’s economic growth. Thus, meaning that any slowdown out of the East Asian giant wouldn’t bode well for the growth of the two countries. The Shanghai Composite and the Hang Seng pared gains after the key data crossed the wires.
USD/CNH – 5min Chart – Created Using FXCM Marketscope
AUD/USD – 5min Chart – Created Using FXCM Marketscope
NZD/USD – 5min Chart – Created Using FXCM Marketscope