FXStreet (Bali) - The Australian and New Zealand Dollar were both pressured in Asia, with a lower-than-expected NZ CPI and a counter-intuitive reaction to positive Chinese GDP Q2 acting as the catalyst.

AUD/USD started the day below the 0.94 resistance area, which had been well protected following Yellen's testimony, who showed no rush to telegraph an early rate hike campaign in the near future. Even before the Chinese data, a slow but steady decline in AUD had already been initiated off Tokyo, with a 'sell the fact' type of move on the 2% Chinese Q2 GDP vs 1.8% only exacerbating the losses to 0.9335/40 support, which had preceded a short-lived attempt to bounce.

NZD/USD was offered outright from the get go, with a disappointing inflation reading out of New Zealand in the very early hours of Asia extending Tuesday's losses. Then came the Chinese GDP, which added selling pressure on the AUD, and the NZD as a result.

USD/JPY made a new marginal high of 101.76 although trading develped in a very slow fashion, with the focus being in the antipodean currencies. The Nikkei 225 headed into the closing flat for the day, an occurrence that helped little to provide directional bias to JPY.

On the fundamental front, in New Zealand, on the heels of poor dairy auction on Tuesday, Q2 CPI came at +0.3% q/q vs +0.4% expected. In Australia, RBA’s Edwards said the Australian dollar looks a bit overvalued, while Australia's Westpac/Melbourne Institute Leading Index for June was +0.1% m/m vs 0.1% exp. In the US, Federal Reserve Esther George sounded hawkish, saying that strengthening economy means interest rates should increase. Lastly, in China, Q2 GDP stood at +7.5% y/y vs 7.4% exp, with industrial production, retail sales, investment also printing solid numbers in line with expectations.