9 Dec 2013
Flash: China prints largest trade surplus since early 2009 - Westpac
FXstreet.com (Bali) - The overall tone to China’s Nov trade data was quite positive, notes Sean Callow, FX Strategist at Westpac.
Key Quotes
"The main surprise came from the export side, where growth was 12.7% in yoy terms, versus 7.0% expected and the previous print of 5.6%. Combined with slightly weaker than expected import growth, which printed at 5.3% versus 7.0% expected and 7.6% previously, delivered a trade surplus of just under USD34bn."
"This is the largest trade surplus since early 2009 and indeed for 2013 as a whole, we are on track for the largest surplus since 2008."
"Given that CNY rose only 0.4% vs USD over the month, we suspect PBoC FX reserves rose substantially, with potential flow on support for the likes of EUR."
Key Quotes
"The main surprise came from the export side, where growth was 12.7% in yoy terms, versus 7.0% expected and the previous print of 5.6%. Combined with slightly weaker than expected import growth, which printed at 5.3% versus 7.0% expected and 7.6% previously, delivered a trade surplus of just under USD34bn."
"This is the largest trade surplus since early 2009 and indeed for 2013 as a whole, we are on track for the largest surplus since 2008."
"Given that CNY rose only 0.4% vs USD over the month, we suspect PBoC FX reserves rose substantially, with potential flow on support for the likes of EUR."