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China’s July Trade Balance: Surplus expands as exports and imports fall more than expected

China's Trade Balance for July, in Chinese Yuan terms, came in at CNY575.5 billion versus CNY625.25 billion and CNY491.25 billion last.

Exports plunged 9.2% in the reported period vs. -8.9% expected and -8.3% previous.

The country’s imports fell 6.9% vs. -2.6% prior. The market consensus was for a 2.5% drop.

In US Dollar terms, China’s trade surplus widened more than expected in July.

Trade Balance came in at +80.6B versus +70.60B expected and +70.62B previous.

Exports (YoY): -14.5% vs. -12.5% exp. and -12.4% prior.

Imports (YoY): -12.4% vs. -5.0% exp. and -6.8% last.

Additional takeaways

China Jan-July dollar-denominated exports -5.0% YoY.

China Jan-July dollar-denominated imports -7.6% YoY.

China Jan-July trade balance +$489.57 billion.

China July trade surplus with the US $30.3 bln vs. $28.72 bln surplus in june.

China Jan-July trade surplus with the US $181.8 billion.

FX implications

AUD/USD is weighing mixed Chinese trade figures. The spot is down 0.30% on the day, trading at 0.6552, as of writing.

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