USD/CNY rises as China exports contract unexpectedly in October

USD/CNY strengthened following China's disappointing October trade data, with exports contracting 1.1% year-over-year in USD terms, sharply missing the expected 3.0% growth and reversing from September's robust 8.3% expansion. This marks the first export decline in recent months, signaling potential weakness in global demand. Imports also disappointed, growing only 1.0% versus expectations of 3.2%, down from 7.4% previously. The trade surplus narrowed to $90.07 billion from $90.45 billion, below the forecast of $95.60 billion. China's trade surplus with the US expanded to $24.76 billion from $22.82 billion, which may reignite trade tensions. The weak export performance suggests softer economic momentum in China, potentially prompting further stimulus measures from authorities. For forex traders, this data supports USD strength against Asian currencies, with USD/CNY likely to test resistance levels as markets price in China's slowing trade dynamics.