China’s Exports Slump in August, Trade War Weighs - Forex News by FX Leaders

China’s Exports Slump in August, Trade War Weighs

Posted Monday, September 9, 2019 by
Arslan Butt • 1 min read

The trade war continues to exert pressure on the Chinese economy, with exports from China witnessing a sharp decline, especially to the US. In August, China’s exports declined 1% YoY, the sharpest decline seen since June, instead of a rise in exports that economists had forecast.

China’s exports to the United States declined by 16% YoY during August, a sharper fall than the 6.5% seen in July. As the trade war escalates, China’s imports from the US have also slid lower by 22.4% during August.

Despite the Chinese yuan weakening beyond the key level of 7 against the US dollar, exports from China haven’t picked up and made the most of this depreciation. This reveals that overseas demand has slowed down, and with the US and China inflicting more tariffs on each other, demand could also get worse.

Meanwhile, at the start of a new trading week, USD/CNH is trading somewhat bullish after having risen higher to 7.123 at the time of writing.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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