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China’s trade data was better than expected in March, with both imports and exports declines smaller than expected, per TD Securities. USD/CNY trades at 7.059.

Key quotes 

“China’s March exports came in at -6.6% (TD -13.5%, mkt -13.9% y/y) while imports were -0.9% (TD -1%, mkt -9.8% y/y) in USD terms.” 

“The March trade balance was $19.9bn (mkt $20.0bn) while the trade surplus over Q1 20 was $13.2bn, down from $76.3bn in Q1 19.”

“Unfortunately, the good news is unlikely to last. Demand side weakness is likely to result in a sharp decline in exports over the next few months.”

“While China is increasingly reacting to growth risks via greater fiscal and monetary action it will not be enough to engineer a V-shaped recovery.”