Australian Dollar Gains as Chinese Data Meets Expectations
THE TAKEWAY:Chinese GDP increased to 7.6% in the second quarter year over year > Data falls in line with expectations > Australian Dollar Gains
The Australian Dollar gained against the U.S. Dollar as the Chinese real gross domestic product increased by 7.6 percent in the second quarter, year over year, which marks the slowest growth rate since June 2009. Second quarter GDP increased by 1.8 percent, quarter over quarter, slightly improving from first quarter results which registered at 1.6 percent. Industrial production for the year decreased marginally to 9.5 percent from 9.6 last year. Retail Sales posted 13.7 percent growth in June, year over year, meeting projected expectations set at 13.4, but still down sharply from December when retailers posted 18.1 percent gains.
The Chinese data mostly fell in line with expectations, likely providing little new incentive to aggressively short high-yielding, risk-sensitive Australian Dollars. It’s possible that markets decided to take profits a day after the Australian currency was heavily sold-off which effectively reduces investors’ risk exposure over the weekend.
AUD/USD, 15 Minute Candles
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