Chinese Trade Balance Better Than Expected; Australian Dollar Sold
By DailyFX - 07/09/12 - 10:49 PM EDTBy Gary Kerdus, THE TAKEWAY : Chinese trade balance $31.73B in June versus $18.70B in May, beat expectations set at $24.00B > Exports increased by 11.3 percent year over year, Imports increased 6.3 percent year over year > Australian Dollar weakens Australian Dollar falls even though Chinese trade balance came in better than expected at $31.73B in June. Market expectations called for $24.00B and last month’s trade balance came in weaker at $18.70B suggesting that demand for Chinese goods may have improved. Chinese exports increased by 11.3 percent in June from last year beating expectations set at 10.6 percent. Imports came in at 6.3 percent in June over the prior year falling short of expectations set at 11 percent. The Australian export-led economy derives much of its wealth from Chinese demand for commodity production. Furthermore, Chinese data last week produced rate cuts for the first time since 2008 and CPI data which marked its slowest rate of increase in 29 months, signaling to markets that the world’s second largest economy has likely begun to slow. A slowing Chinese economy has a propensity to weigh heavily on the risk-sensitive Australian Dollar. AUD/USD, 1 Minute Chart
DailyFX is the forex news and research arm of FXCM, Inc (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.
Latest news from section
See all news From Currencies