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China data boost Aussie, kiwi and EM currencies
The US dollar fell across the board after softer than expected US inflation data on Thursday but in another sign of dollar resilience, it recovered all the losses in the following hours and rebounded.
Data in focus today came out of China which showed growth slowed in the first quarter of this year. GDP grew 6.7 percent in Q1 from a year earlier, which was in line with expectations. But this was the slowest pace of growth in the world’s second largest economy in seven years.
The market consensus was for GDP to grow 6.7 percent, easing slightly from 6.8 percent in the fourth quarter and marking the slowest rate of growth since the first quarter of 2009, when growth tumbled to 6.2 percent.
There was muted reaction in the markets after the data as the number was in line with forecasts but the data did give a boost to the Australian and New Zealand dollars and emerging market currencies. China is a major trading partner for Australia. AUDUSD jumped to $0.7725 after the data. Earlier in the Asian session the pair traded at a low of $0.7679. The New Zealand dollar gained 0.5 percent while the South Korea won strengthened 0.4 percent versus the greenback.
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