China's Trade Data Set to Boost AUD Amid Domestic Weakness

China is about to release its August trade figures, which are expected to show accelerated growth in both exports and imports. According to a Reuters poll, exports are forecasted to rise by 25% year-on-year, while imports are predicted to increase by 30%. A widening of the trade surplus to around US$119.05 billion signals continued reliance on exports as the primary driver of economic growth amid weak domestic demand and tepid consumption and investment. China's second-quarter GDP growth slowed to 4.3% against a full-year target of 4.5-5%, while official manufacturing PMI indicators point to improved but still subdued activity, with private PMI showing the longest uptrend in five years. These data are crucial for global investors as they influence commodity prices and the Australian Dollar (AUD), which is closely tied to China's export performance. The AUD’s performance acts as a key indicator of global economic trends, given its correlation with commodity prices worldwide.