* Australian dollar rises 0.2% after Chinese Q2, June data
* Chinese retail sales, output beats expectations
* Chinese quarterly GDP growth was slowest since 1992
* Yen, Swiss franc ease after data release
By Tom Westbrook
SYDNEY, July 15 (Reuters) - The Australian dollar reached a 10-day
high on Monday on stronger-than-expected economic data from China,
which some analysts saw as signalling that moves to revive spending in
the world's second biggest economy are working.
The Aussie gained 0.2% to $0.7033 against the U.S. dollar ,
which ticked higher against the safe-haven yen
and the Swiss franc .
China's industrial output bounced in June from a 17-year low in
the previous month. June retail sales surged 9.8% from a year earlier,
compared with the 8.3% - a slowing from May's tepid figures - that
polled analysts expected.
China is Australia's biggest export market and the data caused the
Australian dollar to touch its highest point since July 4.
The yuan strengthened against the dollar to get to its highest
since last week, while the New Zealand dollar hit a two-week peak.
"China's economy is finding a base and it was not as weak as
feared, so risky currencies go up," said Imre Speizer head of NZ
strategy at Westpac Banking Corporation in Auckland.
"The market is wanting to price a lot of risk into the
Aussie," he said.
China's quarterly gross domestic product posted its slowest pace
of growth in 27 years, as expected, growing by 6.2% in the June
quarter compared to a year earlier.
"The upside from an Australian perspective is that China -
our biggest trading partner - will continue to stimulate its economy
to achieve its official annual growth target," said Commonwealth
Bank of Australia economist Ryan Felsman.
"The new stimulus measures appear to be working, contributing
to stronger readings in June activity data, with investment,
production and retail spending all beating market expectations,"
he wrote in a note to clients.
The U.S. dollar remained under pressure on expectations of a
Federal Reserve rate cut. Comments last week from Fed Chair Jerome
Powell and Chicago Fed president Charles Evans indicated U.S. rate
cuts are needed to boost inflation.
In the U.S., a 25 basis-point rate cut at the end of July is
priced in, and there is a roughly 20% chance of a 50 basis point cut.
Investors will be looking to U.S. retail sales figures due Tuesday
and company earnings for signs of how shoppers and businesses are
weathering the slowdown.
Against a basket of currencies the dollar held near a 10-day
low at 96.830.
It gained against the yen to 108.10, before that was pared to
108.00, well underneath resistance at 108.98. Monday is a national
holiday in Japan and dollar-yen trading volumes were thin.
The greenback rose as much 0.1% against the Swiss franc before
easing back to $0.9845. The euro slipped to $1.272 though stayed in
the two-cent range that has held the single currency since June.
(Reporting by Tom Westbrook; Editing by Richard Borsuk)
((firstname.lastname@example.org; +61466355340; Reuters Messaging: