China’s mixed economic data and weaker US inflation boost the Australian Dollar, lifting AUD/USD to near 0.6980.
AUD/USD climbed to around 0.6980 in Asian trading on Wednesday, extending gains for a second day. The Australian Dollar strengthened after China, its largest trading partner, released key economic figures that largely met or exceeded expectations, despite some misses in GDP growth.
China’s Q2 GDP grew 0.9% quarter-on-quarter, slowing from 1.3% in Q1 but matching consensus. Annual GDP rose 4.3%, below the 4.5% forecast, while June Retail Sales surged 1.0% year-over-year, beating expectations. Industrial Production also outperformed, rising 5.3% versus the 4.6% estimate.
The US Dollar’s decline, driven by softer-than-expected June inflation data, further supported the pair. US CPI eased to 3.5% year-over-year, down from 4.2% in May, fueling speculation of a less hawkish Federal Reserve stance.