China's trade surplus widened unexpectedly in September, reaching CNY905.97 billion, surpassing the previous month's CNY809.3 billion and exceeding market expectations of CNY805 billion. The surge was driven by a 29.6% year-over-year rise in exports, up from 18.6% in August, and a 24.6% increase in imports, compared to 21.7% the prior month.
In U.S. dollar terms, the trade surplus also expanded, hitting $133.53 billion, well above the forecasted $118.1 billion and the previous $119.09 billion. Exports grew by 36.3% year-over-year, significantly higher than the anticipated 25.5% and the previous 25%. Imports climbed 31%, also surpassing the expected 24.5% and the prior 28.2%.
The positive trade data lifted the Australian Dollar, with AUD/USD climbing 0.21% on the day, testing the 0.7000 mark. China's strong trade performance is particularly relevant for Australia, given its status as Australia's largest trading partner and the significant role of exports like iron ore in the Australian economy.
The Reserve Bank of Australia (RBA) closely monitors such data, as the health of the Chinese economy and trade balances directly influence the Australian Dollar's value. Strong Chinese demand for Australian exports typically supports the AUD, while weaker performance can have the opposite effect.