This morning, China released a set of particularly stronger expected economic data. This helped to boost the Aussie dollar (AUD/USD). Official government economic data showed that the Chinese economy, their gross domestic product (GDP) accelerated in the first quarter. The annual GDP growth rate beat expectations growing at 6.9 percent. This was the highest since the third quarter of 2015.
In other economic data, released this morning, out of the world’s second largest economy, showed that retail sales and industrial production came in surprisingly better than expected. Sales receipts added 10.9 percent annually in March. This matched the previous month. This upbeat data will quell some fears and off forecasts for a slowdown.
The Aussie Dollar gains after the Data
The Aussie dollar, if you note the above 15 minute MT 4 chart, initially rose after the data crossed the news wires. The Aussie often reacts as a proxy asset for China’s economic trends. China happens to be Australia’s top export partner. Especially in raw commodities.
The Australian dollar, for now shrugged off regional tensions between the United States and North Korea but ongoing geopolitical tensions will, most likely, limit follow through with the risk sensitive currency. Tensions remain high in Syria after a boss bombing killed scores of refugees escaping the war zone. Also, a US Navy air craft carrier battle group is entering the Asian area to show North Korea the US i serious about stopping their missile program.