China’s May trade balance surged to $105.43 Billion, exceeding forecasts, but the Australian Dollar shows limited reaction in early trade.
The Australian Dollar (AUD) traded flat at around 0.7050 in Tuesday’s Asian session, despite China’s trade surplus hitting $105.43 Billion in May. The print surpassed the $92.1 Billion estimate and the prior $84.82 Billion, with imports and exports both rising sharply above expectations.
China’s imports grew 27.4% year-over-year, outpacing the 25% forecast, while exports rose 19.4%, above the 15% consensus. The data underscores robust demand in Australia’s largest trading partner, though the AUD’s muted response suggests investors may be awaiting further cues.
Markets now turn to China’s May Consumer Price Index (CPI) due Wednesday. Meanwhile, the US Dollar Index (DXY) edged lower to 99.95 as geopolitical tensions eased following a ceasefire push between Israel and Iran.