Asian Currencies Get Boost from Strong Chinese Data
Chinese Economic Data Surprises Positively
Asian currencies received a boost from better-than-expected Chinese economic data on Wednesday. The yuan reached a one-week high, putting pressure on the U.S. dollar. China’s official data showed that the economy grew 1.3% in the third quarter, surpassing market forecasts. Industrial output rose, and unemployment fell, indicating that the growth target for this year will likely be achieved.
Impact on Asian Currencies
As a result of the positive Chinese data, the yuan, Australian dollar, and New Zealand dollar all experienced upward movement. The yuan hit a one-week high against the dollar before retreating slightly. The Australian dollar rose by 0.2% and the New Zealand dollar increased by the same margin.
Other Factors Affecting Currency Markets
While the strong Chinese data had a significant impact on currency markets, other factors also influenced trading. A blast at a Gaza hospital and U.S. President Joe Biden’s visit to Israel created some uncertainty and kept market moves modest. Additionally, the U.S. dollar struggled to gain momentum, potentially signaling a correction after a period of strong performance.
Global Currency Trends
Looking at global currency trends, the euro gained 0.1% overnight and remained steady in Asian trading. Sterling held its position against the dollar. The benchmark Tokyo spot and Europe spot rates have seen significant increases in recent months but have encountered some resistance as they approach their respective limits.
Current Currency Bid Prices
- Euro/Dollar: $1.0579
- Dollar/Yen: 149.6600
- Euro/Yen: 158.34
- Dollar/Swiss: 0.8989
- Sterling/Dollar: 1.2182
- Dollar/Canadian: 1.3634
- Aussie/Dollar: 0.6380
- NZ Dollar/Dollar: 0.5907
These bid prices are accurate as of 0516 GMT and represent the current state of currency trading.
