The Chinese economy grew by 6.9% y/y and 1.8% q/q according to the official figure. While the release from the economic giant always raises some doubts, this was enough to boost the Australian dollar.
However, other figures do indicate some weakness, and the Aussie remains somewhat vulnerable.
Economists had expected a y/y growth rate of 6.8% so 6.9% is a beat. This is still the lowest since 2009 but can be seen as well engineered by the authorities.
Industrial output rose 5.7% y/y, worse than 6% expected and 6.1% last time. Fixed Asset Investment (FAI) rose only 10.3% instead of 10.8% expected and 10.9% expected.
The authorities say that the economy still faces downward pressures and that the drop in growth partly reflects weakness in the global economy and even expectations for a Fed rate hike. Chinese unemployment stands at 5.2%.
The responses include a surprise from the better than expected GDP but worries about investment in housing.
AUD/USD started the new trading week by falling to 0.7230, below the important 0.7280 level that separated ranges. The news from its main trading partners sent it higher, and it peaked just above this line, at 0.7289.
However, the pair is slipping down once again, trading at 0.7270 at the time of writing.
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