On Tuesday, the National China’s Statistic Bureau released the export data. It grows for about 32.2 percent year – over – year in June. That number is higher than the 2.3% increase forecast.
The impressive export growth also becomes the 12th rising speed in a row. Meanwhile, the China’s import also increased by 36.7% in June. That completes the growth for 9 months in a row.
The data is lower than the May increase which reached 51.1%. However, the number this time is still higher than the rising projection of 30%. A commodity there is also increasing.
That is the corn commodity that rose by 318.5% to become 15.3 million ton in the first six month of this year. The wheat import is also higher for about 60.1% this time.
The Data Affects the Trade Balance Report
The solid growth of the China’s expprt and import in June has a direct effect to the trade balance report. It experiences the surplus of $52.53 billion. That is higher than the May period.
In that month, the surplus was reaching $45.54 billion. Although the China’s export – import data grows properly along the six month periods in this year, the analysts warn something.
There is a possibility that the growth will be slowing down in the second quarter of 2021.it is because the trade increase in that country so far is mostly caused by the statistical data adjustment.
It is especially after the sharp decline because of the COVID-19 pandemic last year. However, the trade speed in Chine song this year will still maintain the quick growth.
Meanwhile, the Australian Dollar Declines
Before, the Australian dollar has been in a stronger position than Greenback in the Asian trade session yesterday. However, the AUD/USD then step back again and stuck under the 0.7500 level.
The market participants are quite happy to see the China’s economy data release which is better than the expectation of a consensus. That fix the global market sentiment for a little.
Unfortunately, the business sentiment survey result in Australia is worse. It is because of the tighter social restriction applied there. The trade balance in China recorded an increase.
It is especially for the June period which is 36.7% higher year – on – year. That is better than the 29.5% consensus expectation. It becomes a good news for Australia because of a reason.
Better China’s Economy is a Support for Australia
China is the major destination for the top commodities from that Cangaroo country. The examples are like the gold, LNG, coal, and ore. Those are the important commodities.
The better economy condition in China can become a support for the Australian dollar exchange rate. However, the economic climate in the domestic area is not too good.
That situation makes the market participants ignore the Australian Central Bank or the RBA optimism. They are also doubting the Aussie economy outlook.
The Nab's australian business confidence survey score fell from +20 to +11 for the June 2021 period. The results of the evaluation of business conditions also fell from +36 to +24.
The Lockdown and Restriction are Extended
The June survey was conducted amid a period of rising cases in New South Wales. It is also when the early part of the lockdown there and in the other states as well.
Unsurprisingly, the business confidence was hit. This is a particularly evident in NSW and Queensland, but confidence (is also) weakening in general elsewhere. That was stated by an analyst.
The NSW Premie, Gladys Berejiklian, yesterday said that the lockdown in Sydney -which originally ended on July 16 - would almost certainly be extended. That is a possibility.
He also announced a number of additional rules to tighten the lockdown that has taken place. The number of COVID-19 cases has continued to increase over the past few days.
