After February’s bloodbath in Chinese trade data, expectations were for a scorching hot rebound in March. With PBOC’s Yuan ‘basket’ devaluation accelerating throughout this period it should not be surprising that Yuan-based China exports soared and imports beat expectations (but fell 1.7% – extending the losing streak to 17 months in a row). For now, oil and stock (US and China) prices are rising in reaction to this “good” news. Offshore Yuan is drifting stronger against the dollar.
Yuan has been plunging against China’s largest trading partners…
And so maybe Jack Lew has a point when he complains about competitive advantage…
- *CHINA’S MARCH TRADE SURPLUS 194.6 BILLION YUAN
- *CHINA’S MARCH EXPORTS RISE 18.7% Y/Y IN YUAN TERMS
- *CHINA’S MARCH IMPORTS FALL 1.7% Y/Y IN YUAN TERMS
USD-based data looks similar…
All driven by what China’s customs spokesman said was a “low base” as Bloomberg’s Tom Orlik notes, China’s March export bounce reflected more base effect than increased demand.
And under the covers…
- *CHINA JAN-MAR COPPER IMPORTS RISE 30.1% Y/Y
- *CHINA JAN.-MAR. CRUDE OIL IMPORTS UP 13.4%
What will Mr.Trump think of all this?
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