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AB Previews Aussie & CHina Trade Data

Australia will release its trade balance for April at 0130 GMT. A surplus of A$530 million is expected but the breakdown of the data will shed light on how severely the earthquake in Japan is affecting global trade. About 20% of Australian exports go to Japan and a disappointing figure may be due to disruptions and plant closures.

China will release April trade balance figures at 0200 GMT. THIS REPORT IS BADLY UNDERAPPRCIATED BY TRADERS. A surplus of $3.2 billion is expected but this is not the data point to focus on. Instead, look to the import/export figures. Imports are expected to rise 28.9% y/y while exports are expected up 29.5%. Focus especially on imports as Chinese importers are at the very forefront of the global supply chain. When the Chinese are increasing imports its because they see strong worldwide demand for finished goods. Last month, strong figures on imports (27.3% vs. 19.5% exp) and exports (35.8% vs. 21% exp) foreshadowed strong CPI and GDP reports.

By AB - AshrafLaidi.com Staff