China Q1 GDP y/y meets expectation at 6.7%, risk friendly outcome

China's Q1 GDP y/y came at 6.7% vs 6.7% expected and 6.8% last. March Industrial Production y/y stood at 6.8% vs 5.9% expected and 5.9% last, while March Fixed Assets (excluding rural) YTD y/ came at 10.7% vs 10.4% expected and 10.2% last. As per March Retail Sales y/y, it came at 10.5% vs 10.4% last. Lastly, China New Loans (Mar) was CNY 1370.0 bln vs CNY 1100.0 bln expected and CNY 726.6 bln last.

The data should be, in overall terms, risk friendly for market sentiment, given that China has managed to sustain growth numbers well above the 6.% handle, a psychological level which Chinese Premier and market commentators have hinted it may be the next realistic target for the country going forward. For now though, Chinese GDP, coupled with strong industrial production and retail sales, especially the former, has allowed currencies the likes of the Aussie to appreciate further.