China’s statistics cheer up market

Despite all pessimistic forecasts, China’s economy is holding a steady pace of economic growth. Most analysts expected China’s GDP to ease to 6.6%. Their assumptions were based on the recent series of macroeconomic data and a slowdown in business activity of the factory sector, the key sector of the second-largest global economy. However, China’s economy beat estimates with a 6.7% expansion in the second quarter in annual terms thanks to sharp growth of investments in real estate. Nevertheless, the GDP figure is still hovering at the lowest level since the crisis which hit the world in 2008-2009. Apart from the solid print of economic growth, markets are encouraged with reports on China’s retail sales and industrial output. Consumer activity in China rose notably to 10.6% in June, much higher than expectations for a 9.9% increase. Besides, experts underestimated China’s key economic sector. Industrial output for June climbed to 6.2% on a yearly basis. The market expected the opposite dynamic, namely a 5.98% contraction. The string of upbeat data from China made a positive impact on the Australian currency as Australia is the main supplier of commodities to China. The Australian dollar surged abruptly against the US dollar. The aussie approached 0.7670, but it was unable to secure at this level. Today, traders are braced for a consumer inflation report from the United States. It is widely expected that consumer prices accelerated in June. This could enable the US dollar to advance against other majors. https://www.instaforex.com