AUD stronger despite import decline in China

It is a complete mystery why AUD was able to appreciate following the publication of the Chinese trade balance data. Of course the Chinese trade surplus was more pronounced than had been expected. 

However, that is hardly decisive for Australia, a country that records a notable trade balance surplus versus China. What matters are Chinese imports, which were extremely disappointing. 

"In other words, Australia's largest foreign sales market is collapsing. If that is not a sign that there may be a need for some monetary policy action", says Commerzbank.