The Chinese economy experienced a quarter-on-quarter growth of 1.6%, which exceeded the economists’ expectations of 0.9% and was followed by a 1.0% growth in the previous quarter. This growth was particularly noteworthy as Beijing had set a growth target of 5.0% for the year 2024.
While some economic indicators showed positive signs, such as a 4.5% year-on-year increase in industrial production in March and a 3.1% rise in retail sales during the same period, other indicators pointed to a loss of momentum at the end of the quarter. Retail sales had previously advanced by 5.5% in February, indicating a slowdown in consumer spending.
Despite these mixed signals, fixed asset investment saw a 4.5% year-on-year increase, and the Chinese unemployment rate fell slightly from 5.3% to 5.2%. This shift suggested the possibility of a change in momentum in the economy, with economists forecasting further investment growth and a decrease in the unemployment rate.
Following the release of these economic figures, the Australian Dollar (AUD/USD) initially rose to a high of $0.64446 before dropping to a low of $0.64081