China Trade Data Signals a Weaker Demand Outlook
Highlights
Trade data from China sent mixed signals on Thursday.
Exports unexpectedly rose in November, while imports declined.
The pullback in imports suggested a sluggish demand outlook.
China Trade Data Delivered Mixed Signals
China’s US dollar trade surplus widened from $56.53 billion to $68.39 billion in November. Exports unexpectedly increased by 0.5% year-over-year. Economists forecast exports to decline by 1.1%. In October, exports were down 6.4%. However, imports fell by 0.6% after increasing by 3.0% in October. Economists forecast imports to rise by 3.3% in November.

While the pickup in exports signaled improving trade terms in November, import numbers disappointed. A marked reverse in imports suggested a sluggish demand outlook.

Australian trade data from earlier in the session delivered a similar demand layout. Falling imports countered rising exports, also suggesting a weaker demand outlook.

AUD/USD Reaction to the Trade Data
Before the trade data from China, the AUD/USD rose to a high of $0.65586 before falling to a low of $0.65318.

However, in response to the trade data, the AUD/USD climbed to a high of $0.65368 before dipping to a low of $0.65335.

On Thursday, the AUD/USD was down 0.22% to $0.65339.

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