The Single Currency Grows Further While China Seeking Help From EU
Euro significantly reinforced to trade as the strongest while Loonie and Pound are trading as the weakest ones. The common currency was boosted by the greenback’s softening and by data, showing that China is desperately trying to improve trade with EU, trying to save itself from the trade war with Washington. That is, import from the EU to China recoiled impressive 20.% mom, 19.7% yoy. Trade surplus with EU declined -31.0% mom, -7.9% yoy. Meanwhile, trade surplus with US reduced-3.0%, with -2.5% drop in export and -1.5% mom lowering in imports.
More specifically, China trade surplus in CNY term reduced from 262 billion Yuan to 177 billion Yuan in July. Exports were up 6.0% yoy to 1390 billion Yuan and imports rose 20.9% yoy to 1213 billion Yuan. Year-to-July, exports increased 5.0% yoy to 8894 billion Yuan and imports lifted 12.9% yoy to 7826 billion Yuan, with a surplus of 1068 billion Yuan.
In USD term, trade surplus fell to from 41.6 billion dollars to 28.1 billion dollars. Exports surged 12.2% yoy to 215.6 billion dollars and imports were up 27.3% yoy to 187.5 billion dollars. Year-to July, exports increased 12.6% yoy to 1387 billion dollars and imports lifted 21.0% yoy to 1221 billion dollars, with surplus of 166 billion dollars.
China’s total trade with the European Union increased 5.9% mom, 13.4% yoy to 60.7 billion dollars in July. Exports fell -2.3% mom, lifted 9.4% yoy to 35.9 billion dollars. Imports grew 20.5% mom and 19.7% yoy to 24.7 billion dollars. Year-to July, trade surplus with EU narrowed -31.0% mom, -7.9% yoy to 11.2 billion dollars. China’s total trade with EU throughout year to July rose 12.7% yoy to 383 billion dollars. Exports were up 10.8% yoy to 227 billion dollars. Imports surged 15.6% yoy to 155 billion dollars. Total trade surplus rose 1.6% yoy to 72.1 billion dollars.
China’s total trade with the United States declined -2.3% mom, grew 11.2% yoy to 55.0 billion dollars in July. Exports fell -2.5% mom, rose 11.2% yoy to 35.9 billion dollars. Imports were down -1.5% mom, lifted 11.1% yoy to 24.7 billion dollars. Trade surplus reduced-3.0% mom, rose 11.3% yoy to 28.1 billion dollars. For year-to July, total trade with US grew 12.2% yoy 357 billion dollars. Exports were up 12.5% yoy to 259.1 billion dollars. Imports surged 11.4% yoy to 97.5 billion dollars. Trade surplus increased 13.2% yoy to 161.6 billion dollars.
The US Trade Representative declared US will begin collecting 25% tariffs on Chinese imports worth 16 billion dollars starting from August 23. The list includes 279 of the original 284 tariff lines announced earlier. China’s bad practices have been once again mentioned. They suggest that China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from U.S. companies; China deprives U.S. companies of the ability to set market-based terms in licensing and other technology-related negotiations; China directs and unfairly facilitates the systematic investment in, and acquisition of, U.S. companies and assets to generate large-scale technology transfer; China conducts and supports cyber intrusions into U.S. commercial computer networks to gain unauthorized access to commercially valuable business information.
Australian home loans fell-1.1% mom in June. Today, Canada will feature building permits and US will release crude oil inventories.