China Trade Terms Improve in April on 1.5% Rise in Exports and 8.4% Surge in Imports

Bob Mason
Published: May 9, 2024, 03:28 GMT+00:00

Key Points:

  • China’s US dollar trade surplus widened from $58.55 billion to $72.35 billion in April.
  • Exports increased 1.5% year-on-year, with imports advancing 8.4% in April.
  • Later today, US jobless claims and Fed chatter need consideration.
China Trade

In this article:

On Thursday (May 9), trade data from China warranted investor interest.

China Trade Terms Turn Positive

China’s US dollar trade surplus widened from $58.55 billion to $72.35 billion in April. Economists forecast a trade surplus of $76.70 billion.

Exports increased 1.5% year-on-year in April after falling 7.5% in March. Economists forecast a 1.0% rise in exports. Imports climbed 8.4% year-on-year in April after declining 1.9% in March. Economists forecast imports to rise by 5.4%.

The latest trade data from China signaled an improving demand environment, aligning with the private sector PMI numbers for April. In April, the Caixin Manufacturing PMI increased from 51.1 to 51.4. According to the April survey, new orders from overseas increased at the most marked pace in almost three-and-a-half years.

AUD/USD Reaction to the China Trade Data

Before the stats, the AUD/USD fell to a low of $0.65693 before rising to a high of $0.65838.

However, in response to the trade data from China, the Aussie dollar increased from $0.65749 to a high of $0.659080,

On Thursday (May 9), the Aussie dollar was up 0.02% to $0.65804.

A screenshot of a graph Description automatically generated

US Jobless Claims and FOMC Member Chatter in Focus

On Thursday (May 9), US jobless claims will warrant investor attention after the recent US Jobs Report. Economists forecast initial jobless claims to increase from 208k to 210k in the week ending May 4.

A higher-than-expected number could raise investor bets on a September Fed rate cut.

However, investors must consider FOMC member chatter amidst concerns about sticky inflation. FOMC voting member Mary Daly is on the calendar to speak today. Views on the economy, inflation, and the Fed rate path need consideration.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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