Image source: Prasit Rodphan © 123RF.com
According to China's General Administration of Customs (CGAC), the country's trade surplus has reached $45 billion in April, up from the 1.99 billion recorded over the previous month.
This is way above the consensus forecasts of $9.7 billion, as well as the recorded performance for the same month last year when the trade surplus has been $13 billion.
China Trade Balance. Image source: TradingEconomics.com
As can be seen from the chart above, the world's second-largest economy is on the fast-track of recovering its trade performance to levels from before the outbreak of the novel coronavirus, and the subsequent market crash.
This is good news for the global economy because it indicates the sustainability of the international supply chains, as more and more governments are now drawing out plans for gradually lifting their restrictions in a bid to restore their economic activities.
The news could also turn out to be good for the Chinese Yuan, which has been struggling against the US dollar over the last several days.
The USDCNY is currently consolidating just above the major support level at 7.0634. Meanwhile, the narrow Bollinger Bands are indicating the diminished levels of adverse volatility in the market, which could be a precursor to a major breakout in either direction.
USDCNY 1D Price Chart. Image source: Trendsharks ©, created with TradingView.com
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