China data points to slow recovery
FX markets were mostly weaker across Asia yesterday after Chinese GDP numbers – along with other key Chinese data – missed forecasts.
China’s annual economic growth was reported at 6.3% in the 12 months to 30 June – below the 7.3% forecast – as China recovered from last year’s lockdowns at a slower than expected pace. The quarterly growth rate, at 0.8%, was above the 0.5% forecast.
However, more forward-looking indicators were also disappointing, with retail sales at 3.1% in annual terms (versus 3.2% forecast) and fixed investment at 3.5% (versus 3.8% forecast).
Industrial production, at 4.4% in annual terms, was better than expected.
Aussie weaker in line with losses across Asia
The poor Chinese data hit FX markets across the region.
The AUD/USD extended losses from last week’s highs with the AUD/USD down 0.3%.
The NZD/USD underperformed with the pair down 0.7%.
The Chinese yuan was weaker with the USD/CNH up 0.3%.
The Singapore dollar, closely tied to global trade volumes, was weaker, as the USD/SGD climbed 0.1%.
US data in focus
US data is in focus tonight with the US economy recently returning to its position as the clear global outperformer.
US retail sales for June is out at 10.30pm AEST with the May result producing a better-than-expected result for the first time since January. US industrial production is also due tonight.
Otherwise, the Reserve Bank of Australia minutes are due at 11.30am while Canadian inflation is released at 10.30pm.
Aussie lower as China GDP misses
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 17 – 21 July
All times AEST
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