8 May 2015
China: Weak trade report reinforces growth concerns – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, reviews the Chinese trade data, noting that weaker than expected imports and exports raise questions on the strength of domestic demand.
Key Quotes
“The main economic data release overnight was the latest trade report from China. The report revealed both weaker than expected export and import growth. In USD terms, exports contracted by an annual rate of -6.4% in April and imports contracted even more sharply by an annual rate of -16.2%. They are both the worst April readings since 2009 and raise investor concerns over both the strength of external and domestic demand.”
“The report will keep pressure on the Chinese authorities to ease policy further to support economic growth.”
“The Chinese renminbi and Australian dollar have displayed little reaction to the report remaining stable overnight.”
Key Quotes
“The main economic data release overnight was the latest trade report from China. The report revealed both weaker than expected export and import growth. In USD terms, exports contracted by an annual rate of -6.4% in April and imports contracted even more sharply by an annual rate of -16.2%. They are both the worst April readings since 2009 and raise investor concerns over both the strength of external and domestic demand.”
“The report will keep pressure on the Chinese authorities to ease policy further to support economic growth.”
“The Chinese renminbi and Australian dollar have displayed little reaction to the report remaining stable overnight.”