CNBC reported that China’s exports contracted in May as “global coronavirus lockdowns continued to devastate demand, while a sharper-than-expected fall in imports pointed to mounting pressure on manufacturers as global growth stalls.”
Lead paragraphs
Overseas shipments in May fell 3.3% from a year earlier, after a surprising 3.5% gain in April, customs data showed on Sunday. That compared with a 7% drop forecast in a Reuters poll.
China’s exports contracted in May as global coronavirus lockdowns continued to devastate demand, while a sharper-than-expected fall in imports pointed to mounting pressure on manufacturers as global growth stalls.
The somber trade readings for the world’s second-biggest economy could pile pressure on policymakers to roll out more support for a sector that is critical to the livelihoods of more than 180 million workers. Total trade accounts for about a third of the economy.
Market implications
Meanwhile, China’s trade surplus with the United States widened to $27.89 billion in May, Reuters calculation based on customs data showed. However, while Sino-US tensions have been on the rise again, US President Donald Trump has little choice but to stick with a Phase 1 trade deal for now which hs been supporting in risk appetite and weighing on the dollar of late. Consequently, AUD/USD has managed an astonishing come back of late.
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AUD/USD Forecast: Bullish potential eased, but no signs of weakness
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