AUD/JPY remains bid despite weaker-than-expected China GDP
- AUD/JPY keeps gains as upbeat China Retail Sales overshadow dismal GDP numbers.
- The above-forecast Chin Industrial Production and risk-on support the AUD.
AUD/JPY continues to trade in green even though the data released soon before press time showed China's economy expanded less-than-expected in the third quarter.
China's quarter-on-quarter gross domestic product (GDP) came in at 2.7% versus expectations for 3.2% and down from the second quarter's 11.5% reading. The annualized GDP printed at 4.9%, also missing the forecast of 5.2%.
Even so, the China-sensitive AUD is keeping gains. AUD/JPY is currently trading at 74.81, representing a 0.33% gain on the day.
AUD's resilience could be attributed to the better-than-expected Retail Sales and Industrial Production numbers for September. As represented by Retail Sales, consumer spending rose 3.3% year-on-year, beating the estimate of 1.8% growth by a big margin. Meanwhile, Industrial Production increased by 6.9% versus a forecast of 5.8%.
Besides, risk-on action in financial markets could be helping the AUD keep gains. Asian stocks are up alongside gains in the S&P 500 futures on renewed expectations for additional US fiscal stimulus and coronavirus vaccines before the end of the year.