Estimates had been downgraded lately, so the data while hitting a 13 month low, does not come as gloomy as some had feared.
Since the markets had been positioning for a bad data as said, now "a test of hourly resistance around 1.0200 in the AUD/USD may be possible" says John Noonan, Head of IFR Markets.
However, to claim this high, the pair should first find enough bids to press thru 1.0160 (marginally broken) but most importantly, buyers will have to outweight sizeable offers thought to be clustered at 1.0180. On the downsode, 1.0040/50 area provides support short term ahead of 1.0120 and 1.0100.
The National Bureau of Statistics also published key monthly and quarterly economic indicators for June this Friday, including industrial output up 9.5% vs 9.8% est., and retail sales, up 13.7% vs 13.6% est .
The urge by the PBoC to cut rates twice this month alone was an "early warning" signal indicating that worse-than-expected data was looming, thus the odds of GDP growth declining thru the 8% handle were high.