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China reported a growth rate of 7% in Q2 2015. This beat expectations for 6.9% and remained in line with the government’s target.

There is no slip to lower growth in the world’s No. 2 economy and this is good news for the the Aussie, which is moving away from lower ground.

Also other figures beat: industrial output rose 6.8%, contrary to 6% expected and 6.1% in Q1. Fixed Asset Investment is up 11.4%, better than 11.2% predicted. Retail sales are up 10.6%, above 10.2% that was on the cards. This shows some  signs of the much needed “rebalancing”.

AUD/USD  reacted positively. It was already rising above 0.7430  before the publication and it reached 0.7487 afterwards, before losing some ground.

China is Australia’s No. 1 partner and remains critical despite the fall in commodity prices. Together with the good Australian employment data, the Aussie may have found a bottom, at least for now. On the other hand, the RBA always wants a weaker Aussie and when a Fed hike eventually comes, we could have another move  lower with some seeing 0.70 as the next target.

Here is how it looks on the chart.

AUDUSD July 15 2015 technical chart higher on good Chinese grwoth