When is China trade balance and how could it affect AUD/USD?

China's Trade Balance Overview

China’s General Administration of Customs is set to release the October month Trade Balance report sometime during mid-Asia this Friday.

Forecasts suggest the Chinese trade surplus to shrink to ¥220.20 billion from ¥275.15 billion. Further, Exports are expected to have jumped by 5.1% versus -0.7% prior while Imports are likely to drop 1.1% vs. -6.2% previous on an annualized basis.

In a case of the Trade Balance report in the US Dollar (USD) terms, the surplus is seen a tough higher at $40.83 billion from $39.65 billion last while exports and imports both are likely to mark further weakness, arriving at -3.9% and -8.9% compared to -3.2% and -8.5% respective priors.

How could it affect the AUD/USD?

At the press time, the AUD/USD pair is seen extending losses below the 0.69 handle, printing daily lows near 0.6880 region after the RBA left doors open for further interest rate cuts, citing that further easing could convey 'overly negative' view on the economy.

On the data release, the Aussie could attempt a bounce back towards 0.6900 if the trade numbers beat expectations. A break above the last would probe the recent resistance place at 0.6915, beyond which the 0.6950 barrier will come into play. Should the data disappoint, the renewed downside in the pair could pick up pace,  sending the rates back to six-day troughs of 0.6862.

Key Notes

RBA SoMP: Board prepared to ease policy further if needed, Aussie back below 0.6900

AUD/USD trims gains as RBA SoMP downgrades growth forecast

White House Spokesman: 'Very optimistic' will soon reach China deal – Fox News

About China's Trade Balance

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 a trade surplus, while a negative value shows a trade deficit. It is an event that generates some volatility for the CNY. As the Chinese economy has an 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.