China Q3 GDP: +7.3% y/y (expected +7.2%)

China Q3 GDP: +7.3% y/y …. bit better than expected

• expected +7.2% y/y
• prior was +7.5%

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A tick better than was expected but down on the prior quarter.

AUD and Kiwi both jumped.

Both into the zone of seller orders

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• China economy expanding now at at its slowest pace since the GFC
• At 7.3%, it’s the weakest since Q1 of 2009 (when it rose 6.6%)

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ps. It 0.1% better than expected, so by all means crack open a champagne, but probably not any bigger than a Magnum, K?

The official target is 7.5% …. but that is looking increasingly ‘flexible':

• PIMCO – Sees China GDP growth slowing to 6.5% from 7.5%
• World Bank says China to grow at 7.4% in 2014, and 7.2% in 2015
• IMF’s Zhu Min – China can accept a GDP growth of between 7-7.5%
• Goldman Sachs China economist – Stats bureau adjustments to methodology boost GDP by 0.1-0.2%