PERTH: The Australian sharemarket was tracking slightly weaker ahead of key Chinese economic data which could provide a trigger for the bourse to test key levels.
At 12.10pm (AEDT), the benchmark S & P/ASX200 was down 3.8 points, or 0.07 per cent, to 5264.4, while the broader All Ordinaries retreated 4.5 points, or 0.08 per cent, to 5299.2.
The local market gained ground out of the starting blocks, as Westpac exited a trading halt following its interest rate hike, but soon turned sour ahead of a Chinese economic release.
China’s GDP data, due out at 1pm (AEDT) was likely to be the next catalyst for local trade, in lieu of an absence of Australian economic or equity news.
Economists were expecting an annual GDP growth rate of 6.8 per cent, which would be slightly down on the 7 per cent rate logged for the year through June.
“A GDP result in line with expectations would frank the recent stock market rally that has been partly driven by a view that markets have become too pessimistic about China’s economic outlook,” CMC Markets chief analyst Ric Spooner said.
“However, given the small deviation from expectations, which has been traditional for China’s GDP figure, any small downside miss has potential to worry markets, especially if monthly industrial production or retail sales data are also below expectations.”
Mr Spooner said the local market has met clear resistance at the 5300 level recently, indicating the development of a psychological level.
“A clear break above 5300 based on ongoing relief about China’s economy would be a bullish signal.
“It would indicate to potential buyers that markets are setting up for the traditional year-end rally driven by reasonable growth from China in combination with potential for another delay in the Fed rate hike.”
Meanwhile, the Australian dollar was slowly climbing down from its recent high near US74c, trading around the US72.5c level at noon.
Mining stocks were the main drag on the local market at noon.
