- China Q2 GDP growth slows to 6.7 pct y/y, in line with expectations.
- China May industrial production printed weaker-than-expected.
- AUD/USD drops after posting a doji candle last week.
The Aussie dollar is on the retreat after weak China data release.
At press time, the currency pair is trading at 0.7412, having clocked a high of 0.7436 earlier today.
The data released a few minutes ago showed China second-quarter GDP growth slowed to 6.7 percent as expected.
Further, industrial production growth slowed to 6 percent year-on-year in May, beating the estimated drop to 6.5 percent from previous month’s print of 6.6 percent. Meanwhile, retail sales growth came in at 9 percent as expected.
The dismal data isn’t boding well for the Aussie dollar – a proxy for China. That said, bigger losses are ruled out as sellers have likely run dry, the last week’s doji candle indicates.
AUD/USD Technical Levels
Resistance: 0.7436 (session high), 0.7484 (July high), 0.75 (psychological level).
Support: 0.7395 (20-day MA), 0.7360 (July 12 low), 0.7310 (July 2 low).