In May, in US term, China’s exports dropped -3.3% yoy to USD 206.8B, better than expectation of -7.0% mom decline. Imports dropped -16.7% yoy to USD 143.9B, worst than expectation of -9.7% yoy. Trade surplus widened to USD 62.9B, up from USD 45.3B. That’s also a record monthly trade surplus, with much help from decline in prices of crud oil and commodities like soy beans.
Year-to May, total exports dropped -7.7% yoy to USD 885.0B. Total imports dropped -8.2% to USD 763.6B. Trade surplus for the first give months of the year was at USD 121.4B.
USD/CNH recovers mildly today but there is no sign of near term bottoming yet. Further decline is expected as long as 7.1333 minor resistance holds. Fall from 7.1961 is seen as the third leg of the consolidation form 7.1953. Break of 7.0523 support will pave the way to retest 6.8452/9040 support zone.