China points to recovery

[Rambo35]

China further points to recover as exports rose 7.2% in August year-on-year and far above the 5.5% economists expected while imports rose less than expected which caused China’s trade surplus to rise by $28 billion. There was a lot of concern that China may be in for a hard landing, but either the stats are meddled with or at least for now some of the fears have been put to rest.

This should lift commodity currencies such as the AUDUSD which has already enjoyed a nice bounce and I would look forward to a higher Australian Dollar. It looks like the economic situation in China may be rebounding or at least pointing into the right direction.

 

[dkami]

Why would you be looking forward to a higher AUDUSD?

Isn't the AUDUSD artificially high enough for you?

If China's imports rose less than expected why should this lift commodity currencies such as AUDUSD as you have stated, what am I missing?

P.S. if I recall correctly china slowed its economy on purpose to more sustainable levels

 

[Pharaoh]

The export numbers never fully reflect what's going on. China's demand for raw materials used to be primarily driven by exports, but internal demand for consumer products is growing at an amazing rate and those products have to be made out of something. Don't forget to add in demand for construction materials.

China's "hard landing" after the 2008 financial fiasco was to lose a couple percent off their very large growth rate.