Chinese currency as we are writing is up 1.2% for the day against Dollar, trading at 6.497 per Dollar. Since Renminbi depreciation was the major spooking factor for global markets, this is a welcoming news. However, today's appreciation of Renminbi is more of a reflector of weaker Dollar than actual strengthening of Chinese Yuan and improvement in economic fundamentals.

Today's trade data released for January show, economic weakness remains persistent. Drop in both exports and imports were larger than expected. Exports dropped 6.6% in January, from a year ago biggest drop since last July. Median expectations were for 3.6% gain. Figure is worse when converted to Dollar terms, slump was 11.2% from a year ago. Total exports were $177.48 billion.

It is even worse for those countries, which rely on China's imports.

Exports to China declined 14.4% on yearly basis and in Dollar terms it is down by 18.8% to $114.19 billion. This drop marks the 15 consecutive yearly drop in imports.

Due to shrinking imports, one figure was able to beat estimates, trade balance.

Trade surplus came at Renminbi 496.2 billion, up from Renminbi 382.1 billion in December. In Dollar terms it was $63.29 billion, up from December's 460.09 billion.