I Think I'll stay up all night watching the London Metal markets... It's going to be such a pleasure...
People can say what they like about resources, shorting $AUD, and the OZ economy.... But the reality is this country has its best days ahead, even with a bad government.. There's an old saying: one Monkey can't stop the Show....
The Chinese trade accounts recorded a healthy surplus in April, CommSec chief economist Craig James says:
And there was even further good news with strong growth in exports as well as imports. Some would focus on the negative aspect of rising imports, pointing to the downward pressure on the trade surplus over time.
However the surge in imports also encouraging, suggesting that Chinese factories have restarted production and require raw materials to keep up with demand.
Interestingly given that export growth also picked up, it could be that the build in inventories was to satisfy domestic Chinese demand as well as an improvement in the global economic activity. Only time will tell but the signs are positive. Overall the Chinese economy is running at a solid pace and other global economies are still buying Chinese products in healthy quantities. The data is good news for Australian resource producers, because China needs raw materials to churn out the finished goods. It also serves to support the Australian dollar.
The dollar rose as high as $US1.0193 on the news, from around $US1.016. It's currently trading at $US1.0183.
