Whither the US Trade Balance?

TD Economics have released an interesting study on changes in US trade flows as a source of continung strength and offset to their considerbale domestic difficulties. Exports are up, fuelled by the US dollar depreciation and strong global demand. However, exporters to the US, mainly Asian, are holding onto their share of the US market by eating the change in exchange rates (minimal for the Asians anyway) so imports into the US are not falling to anywhere near the extent that their exports are rising.

http://www.td.com/economics/special/bc1107_ustrade.pdf 

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