China’s Trade Balance for September saw a narrowing from the previous month, coming in at CNY582.62 billion in Chinese Yuan terms. Exports rose by 1.6% year on year in September, a decrease from the 8.4% growth in August, while imports increased by 0.7% year on year, compared to the 0% recorded previously.
In US Dollar terms, China’s trade surplus decreased in September with a Trade Balance of +81.7 billion, lower than the +89.8 billion that was expected and the +91.02 billion from the previous period. Exports in September only saw a growth of 2.4% year on year, falling short of the expected 6.0% and the 8.7% from the previous month, while imports increased by 0.3% year on year, lower than both the expected 0.9% and the 0.5% from the previous period.
In the first nine months of the year, China’s CNY-denominated exports grew by 6.2% year on year, with imports rising by 4.1% year on year. The trade surplus between China and the US for the period of January to September reached +257.87 billion. In September, the trade surplus with the US was $33.33 billion, a slight decrease from $33.81 billion in August.
Following the release of China’s trade data, the FX implications were seen in the AUD/USD pair, which remained in the red zone below 0.6750. The pair was down by 0.27% on the day, trading at 0.6728 at the time of writing.
In conclusion, China’s trade balance for September showed a narrowing in Chinese Yuan terms, with both exports and imports seeing slower growth compared to previous months. The trade surplus with the US remained positive, although slightly lower than in the previous month. The FX market reacted with the AUD/USD pair trading lower following the release of the data. This indicates potential implications for both the Chinese economy and the global market, as trade tensions and economic uncertainties continue to impact international trade.
