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9 Feb 2015
China sees a big decline in imports – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team reviews today’s China’s trade data release, noting that the record-high surplus was mainly as a result of the sharp decline in imports.
Key Quotes
“After last week's surprising contraction in China official manufacturing PMI - the first in 2 years - latest trade figures released over the weekend are showing few signs of improvement.”
“While the headline trade balance saw a record-high surplus, it was primarily the result of the biggest y/y decline in imports in over 5 years, as exports also showed a marginal drop.”
“Shipments to US were up 4.7%, but imports to
Europe fell 4.6% and to Japan by a whopping 20%.”
“Slump in demand for raw materials was still the culprit on the imports side, as iron ore arrivals fell 9.5% in volume and 50% in value. Likewise, crude oil imports were down 8% in volume and 42% in value.”
“AUD saw moderate impact from the data, falling over 40pips in early trade below $0.7750.”
“Analysts also speculated on the likelihood of more PBoC easing in the trade data aftermath - BoCom economist anticipates 1-2 more RRR cuts over 2015, while ANZ said trade numbers add to the case that domestic demand remains sluggish.”
Key Quotes
“After last week's surprising contraction in China official manufacturing PMI - the first in 2 years - latest trade figures released over the weekend are showing few signs of improvement.”
“While the headline trade balance saw a record-high surplus, it was primarily the result of the biggest y/y decline in imports in over 5 years, as exports also showed a marginal drop.”
“Shipments to US were up 4.7%, but imports to
Europe fell 4.6% and to Japan by a whopping 20%.”
“Slump in demand for raw materials was still the culprit on the imports side, as iron ore arrivals fell 9.5% in volume and 50% in value. Likewise, crude oil imports were down 8% in volume and 42% in value.”
“AUD saw moderate impact from the data, falling over 40pips in early trade below $0.7750.”
“Analysts also speculated on the likelihood of more PBoC easing in the trade data aftermath - BoCom economist anticipates 1-2 more RRR cuts over 2015, while ANZ said trade numbers add to the case that domestic demand remains sluggish.”