China growth data released today exceeded expectations and will likely put upward pressure on risk assets and currencies such as the AUD nL3N21Z0IO.
The run of China data in recent weeks has been strong and clearly shows the large fiscal and monetary stimulus measures taken by Chinese authorities have started to bite.
The most eye-catching number was industrial output for March, which soared 8.5 percent on-year against expectations of a 5.9 percent rise.
In many ways it is more important than the backward-looking Q1 GDP, as it augers well for China's economic growth for the rest of 2019.
The AUD/USD edged above the 200-day MA at 0.7190 before stalling at the February high at 0.7207.
A break above 0.7210 targets the 2019 high at 0.7295.
Key commodities tied to Chinese demand such as copper, oil and iron ore should continue to make ground, while the flows into emerging market assets could accelerate after the strong data.
If those markets rally through the European and U.S. trading sessions, the AUD/USD will likely remain well underpinned on dips.
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