Australian Dollar Holds Gains Following China’s Trade Balance Data
The Australian Dollar (AUD) extends its gains against the US Dollar (USD) on Monday (14/4), supported by improved risk sentiment. The AUD/USD pair rose after US President Donald Trump announced less severe tariffs late Sunday on Chinese imports, including semiconductors and electronics. Clarifying earlier speculation about exemptions, Trump confirmed these goods would remain subject to the existing 20% tariffs related to fentanyl rather than the previously suggested 145% duties.
Stronger commodity prices provided further support for the Australian Dollar. However, persistent trade tensions between the US and China continue to weigh on the outlook, especially given Australia’s heavy reliance on Chinese demand and exports.
China’s Trade Balance for March, measured in Chinese Yuan (CNY), recorded a substantial increase to CNY 736.72 billion, up sharply from CNY 122 billion in the previous month. In US Dollar (USD) terms, the trade surplus also exceeded expectations, coming in at $102.6 billion—well above the forecast of $77 billion, though lower than the prior $170.51 billion.
The General Administration of Customs of China acknowledged the challenges facing the country’s exports, calling the current external environment “complex and severe.” Despite this, officials expressed confidence, stating that “the sky will not fall.” They reported a solid start to the year, with foreign trade showing growth in both volume and quality. The agency also emphasized China’s commitment to enforcing all measures necessary to counter US actions and to uphold its national sovereignty and security.
Source: FXStreet
