More Tailwind For Chinese Exports

Published 06/08/2016, 07:05 AM
Updated 05/14/2017, 06:45 AM

Chinese trade data released today generally supported a picture of a moderate recovery. While the quality of the data is not great, it currently fits well with the information from other key figures such as PMI, industrial production and construction data, which all point to higher activity over the past two to three months.

Having been in negative territory for most of 2015, export growth has shown gains over the past couple of months. Exports are benefiting from rising support from the weakening of the trade-weighted CNY as the FX impulse has moved from a sharp headwind to the highest tailwind in seven years. The CNY basket has declined 7% over the past year.

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