China’ s GDP printed slightly weaker than expected at 6.1% versus 6.3% forecast – its slowest pace of growth this decade, but despite the lower headline number underlying fundamentals suggest that the Chinese economy continues to expand at a healthy pace.

Latest economic data from both New Zealand and Australia showed improvement suggesting that the two Anglo Saxon economies in Asia Pacific may be the first to recover from the global economic contraction as they benefit from continuing Chinese demand.

The dollar picked up a bit of a safe haven bid after Chinese trade numbers printed far worse than expected triggering fears of further slowdown in global growth. China’s trade balance slipped to a surplus of only $4.8 Billion versus estimates of a 27.3 Billion number. Exports fell sharply and the overall surplus proved to be only one eighth as large as the month prior.

China’s trade surplus narrowed to $4.8 billion, against expectations of $27.3 Billion as imports fell 24.1% from a year earlier. This was the fourth straight month of decline in China’s trade balance, but today’s data was particularly shocking as it dropped to only one eight of the amount of the previous month.

Chinese central bank Governor Zhou Xiaochuan pledged today to act assertively in restoring confidence in China’s badly shaken financial sector noting that, “If we act slowly and less decisively, we’re likely to see what happened in other countries: a slide in confidence.” Mr. Zhou’s comments may have simply been a rearguard action after markets were clearly disappointed with Chinese Premier’s Web Jiabao speech on Tuesday that failed to offer any new stimulus spending plans aside from the $800 billion program already announced last summer.