China’s May Trade Balance: Surplus shrinks as exports tumble

China's Trade Balance for May, in Chinese Yuan terms, came in at CNY452.33 billion versus CNY643.25 billion expected and CNY618.44 billion last.

Exports fell 0.8% in the reported period vs. 9.9% expected and 16.8% previous.

The country’s imports rose 2.3% vs. 4.2% expected and -0.8% prior.

In US Dollar terms, China reported a sharp decrease in the trade surplus as exports show a bigger-than-expected drop.

Trade Balance came in at +65.81B versus +92B expected and +90.21B previous.

Exports (YoY): -7.5% vs. -0.4% exp. and 8.5% prior.

Imports (YoY): -4.5% vs. -8.0% exp. and -7.9% last.

FX implications

AUD/USD is feeling the pull of gravity on mostly downbeat Chinese trade figures. The spot is down 0.04% on the day, trading at 0.6667, as of writing.