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  • 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).