Despite improved foreign trade data Australia not out of woods yet

The AUD was briefly able to benefit from what seemed positive Chinese foreign trade data. Chinese imports are "only" 6.1% below last year's levels. Following -17.6% yoy in May that sounds positive. 

Even in the recent foreign trade statistics the level shift of Chinese import volumes remains obvious. What matters for the Australian currency is not just a change in Chinese exports by a few percentage points, what really matters for Australia is whether the country's economic model which depends on growth in the Asian Emerging Markets is at risk or not, according to Commerzbank. This risk is not over yet. Analysts see that something is not quite right with the Chinese growth model. Today's trade balance data does not justify AUD strength by any stretch of the imagination. And the market has reached that conclusion as well now. The momentary AUD strength has already passed again.