China’s GDP contracts 6.8% YoY in Q1 vs. -6.5% expected, AUD/USD little changed

  • China’s GDP arrives at -6.8% YoY in Q1, meets expectations.
  • China’s March Retail Sales disappoint, Industrial Production beat estimates.
  • AUD/USD pays little heed to the mixed Chinese data dump.

China's economy contracted sharply in the first quarter due to the coronavirus outbreak led economic disruptions, the official data released at 02:00 GMT showed. 

The economy marked its first quarterly decline on record in the first three months of 2020.

The annualized first-quarter gross domestic product (GDP) came in at -6.8%, missing the forecasted print of -6.5% and down from the previous quarter's GDP of +6.0%. 

Inter-quarter, China’s GDP arrived at -9.8% in Q1 vs. -9.9% expected and +1.5% previous.

China’s March Retail Sales YoY, the number arrived at -15.8% vs. -10.0% expected and -20.5% last, with Industrial Output YoY at -1.1% and -7.3% expected and -13.5% last. 

Meanwhile, Fixed Asset Investment YoY stood at -16.1% in March vs. -15.1% expected and -24.5% last. 

AUD/USD reaction

AUD/USD pays little heed to downbeat China's Q1 GDP and mixed activity numbers for March, as it holds the higher ground near 0.6375 region, helped by broad-based US dollar weakness and the upbeat market mood.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more