China’s Trade Balance Posts a Surprising Jump in July

Chinese trade balance for July has posted an unexpected increase to $45.06 billion, beating the forecast of $42.65 billion.

USD/CNH

Even as the trade war with the US rages on, Chinese trade balance for July has posted an unexpected increase to $45.06 billion, beating the forecast of $42.65 billion. Chinese exports have also risen 3.3% higher in July, coming in higher than June when exports had declined by 1.4%, even while expectations were for a 1% decline for this month.

Imports in China came down by 5.6%, however, analysts were expecting a drop by 9% in imports YoY for the month of July. While external demand continues to remain soft, possible stimulus efforts such as tax cuts have helped support the Chinese economy which has been reeling under the effects of the trade war with the US.

This news should offer some support to the Chinese yuan which has weakened below 7 against the US dollar after Trump announced more tariffs on Chinese goods. At the time of writing, USD/CNH is trading at around 7.07.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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