Chinese trade data over the weekend was released and showed a fall in exports of 0.3% which was unexpected and has scared a few traders early this morning.
They’ve knocked the Aussie Dollar down from a Saturday morning close of 0.9442 to sit at 0.9418 in early Sydney trade.
Chart Source: ANZ Bank
Imports increased 7.4% in September, which seems to belie the notion that it is a slowing economy that saw the trade surplus shrink from $US28.6 billion to $US15.2 billion last month.
Rather, as the ANZ said in its note on the data over the weekend, it is the strength of the Chinese currency, the RMB, which is impacting on the data.
The ANZ also highlighted something this morning which Aussie Dollar bears might want to factor into their consideration:
Iron ore imports hit a record high in September, reflecting the solid steel output recently, led by the property and automobile sector
The bad news for the Australian economy though, is that data like this just supports further Aussie dollar gains in the months ahead.
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