U.S. Markets closed

Australian Dollar Rallies as China Announces Trade Deficit

Christopher Almeida
Australian_Dollar_Rallies_as_China_Announces_Trade_Deficit__body_china_data_april_10.png, Australian Dollar Rallies as China Announces Trade Deficit

Created Using Marketscope 2.0

THE TAKEAWAY: Australian Dollar builds on gains as China report a trade deficit, a decline in exports and an increase in imports.

The Trade Balance of a country is the difference between the monetary value of exports and imports in an economy over a certain period. A positive value is known as a trade surplus where the value of the exports is greater than imports, and a negative value implies that the value of imports is greater than exports.

March saw the Chinese Trade Surplus of $15.25B in February become a Trade Deficit of -$0.88B as exports fell from 21.8% in February to 10.0% in March and imports rose from -15.2 per cent in February to 14.1 per cent this month. Investors saw this as positive news for the Australian economy and dollar with China being its largest two way trading partner.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.