China's GDP remained steady at 7% in Q2

Wednesday, Jul 15 2015

China's economic pulse appears to be steadying, with quarterly growth data released Wednesday beating forecasts, but that renewed long-standing concerns over data accuracy. For the second quarter, China reported gross domestic product (GDP) grew 7.0% on-year, beating forecast of 6.9% growth. Industrial output for June rose 6.8% on-year, also above expected incline by 6.0%, while last month's retail sales climbed 10.6%.

A spokesperson for China's National Bureau of Statistics said GDP figures weren't inflated and the improvement was "hard won". Concerns about slowing economic growth on the mainland have spurred policy makers to action. Late last month the People's Bank of China (PBOC) cut interest rates and the reserve requirement ratio (RRR) for some lenders in a bigger-than-expected easing package.

That marked the PBOC's fourth round of major action since November amid concerns that the government's annual GDP target of "around 7 percent" could be at risk. China last cut both interest rates and the RRR at the same time in December 2008, at the peak of the global financial crisis. The statistics bureau also attributed the quarter's growth stabilization to recent policy steps.

"The vitality of the economic development was strengthened," it said in its English-language press release. "However, we must be aware that the domestic and external economic conditions are still complicated, the global economic recovery is slow and tortuous and the foundation for the stabilization of China's economy needs to be further consolidated."

After the data Aussie was pushed higher and is currently being traded around 0.7470 level. Pair is likely to find support around 0.74 handle and resistance above 0.75 handle. Later today, in the US session PPI, Empire State Manufacturing Index and Industrial Production figures are scheduled for a release.

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