The Chinese economy grew at an annualized rate of 6.8% in Q4 2016, better than 6.7% that had been projected. Good news? Not so fast. Year on year growth came out at 6.7% as predicted. Other figures were slightly disappointing.

AUD/USD managed to advance and reached 0.7588, above the previous weekly highs of 0.7570, but the move was short-lived, and the pair fell back to its previous range, trading around 0.7540.

Other figures were also more or less in line with early estimations. Chinese industrial output growth slowed to 6%, lower than 6.1% expected and 6.2% seen last time. Fixed Asset Investment decelerated with a growth rate of 8.1% against 8.3% forecast. A positive surprise came from retail sales, that grew by 10.9% instead of 10.7% expected.

For Australia, China’s industrial manufacturing is more important than consumption. Earlier this week, Australia printed a mixed jobs report, with gains in part-time jobs rather than full-time ones.

The focus now shifts to the inauguration of Donald Trump as the President of the USA. Trading could become more volatile.

Here is how recent moves look on 30-minute AUD/USD chart:

(Click on image to enlarge)