Chinese exports likely to have grown in April – DBS Bank

Chinese exports and imports data for the month of April are set to be released this week. According to a DBS Bank research report, exports are expected to have risen 7 percent, whereas imports are likely to have grown 16 percent. The temporary recovery in exports is partially because of a rush to ship exports in impacted sectors before tariffs hit.

Early indicators, in particular the falling NBS new export order PMI, point to easing export growth in the coming months. Meanwhile, imports are expected to continue to perform well in the midst of favourable domestic demand.

“On the monetary front, M2 will rebound slightly yet at a single-digit rate due to the reduction in internal leverage, while aggregate financing and new yuan loans will likely continue to contract”, added DBS Bank.

At 20:00 GMT the FxWirePro's Hourly Strength Index of Chinese yuan was neutral at -49.9371, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 53.7187. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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