After falling -6.20% year over year through the end of December, Chinese exports surged higher during the month of January, exhibiting growth of 7.90% compared to expectations of a 3.30% gain, spurring the biggest trade surplus in a year. According to the Chinese General Administration of Customs, the surplus reached $51.35 billion, beating expectations of $47.90 billion, and the prior figure which was revised lower to $40.71 billion.
Imports also showed significant gains, climbing by 16.70% over levels reported in January of 2015 while beating expectations of 10.00% growth by a wide margin. While positive on a headline basis, the figures could change dramatically in February because of the Lunar New Year holiday which has a historical tendency to skew trade figures. In the meantime, the Yuan continues to extend recent losses, with USDCNH higher for a fourth straight session.