Markets have been waiting patiently for the release of the Q3 GDP data from China today, hoping for a consensus outcome of 7.2% year-on-year growth but fearful of a deceleration to, or perhaps below 7%.
But the print of 7.3% was slightly higher than the 7.2% year-on-year rate and the 1.9% growth rate for the quarter was also 0.1% better than expectations. Still down on last quarter, and close to a six year low, but the key here is market perceptions of growth as much as the actual growth rate.
Retail sales were weaker than expected however printing 11.6% in the year to September. But the big lift in industrial production from the 6.9% last quarter and the 7.5% expected with a print of 8% in the year to September could be a sign of an economy on the improve.
The Aussie dollar, which had been under pressure after the RBA made it clear rates were on hold for some time yet, bounced 40 pips to just above 88 cents in the aftermath of this data. Likewise Shanghai shares have bounced from early losses to be back in the black for the day.