Mitul Kotecha, senior emerging markets strategist at TD Securities, notes that China’s exports and imports beat expectations in December, but further gains are likely to be more gradual.
Key Quotes
“The trade surplus with the US narrowed in December and on a 12m basis. Further narrowing is likely in the months ahead.”
“Trade with Asia has picked up, and the region will likely benefit further from improving China trade.”
“Trade data bodes well for CNY and Asian FX in the near term, alongside the lifting of the currency manipulator designation and formalisation of the ‘Phase 1’ trade deal.”
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