According to a report released by the Ministry of Commerce, China’s foreign trade will maintain steady growth in 2018, as the country’s economy posted stable performance amid mounting external uncertainties.
- China’s foreign trade saw fast growth in the first three quarters.
- The country’s goods trade rose 11.1% to 27.88 trillion Yuan (about 4 trillion US dollars) in the first 11 months of this year.
- Despite all the hurdles caused by US-China trade war, Chinese exports rose 8.2 by to 14.92 trillion Yuan in the January-November period, while imports grew 14.6 percent to 12.96 trillion Yuan, resulting in a trade surplus of 1.96 trillion Yuan, which narrowed by 21.1%.
This, however, is a positive news not only for the Chinese Yuan but also for gold and WTI crude oil.
Why is that?
Well, China is one of the biggest consumers of gold and crude oil and growth in its economy boosts the sentiment that China will resume its demand for gold and crude oil. Moreover, Chinese growth also supports the Australian dollar as China is the biggest trading partner of Australia. So, there’s a chance that investors will turn their focus towards other economies once FOMC is over.