Australian Dollar Ignores China’s Growth Target Revision

The Australian dollar gained today even though news from China, Australia’s biggest trading partner, was not supportive. Perhaps, the currency gained support from positive domestic fundamentals.

China’s Premier Li Keqiang said that the target for economic growth this year was cut down to 6.5% this year, down from the range of 6.5%-7.0% last year. The nation’s economy grew 6.7% in 2016 — the slowest pace in 26 years.

Meanwhile, Australian retail sales edged up 0.4% in January from the previous month, in line with analysts’ expectations.

AUD/USD rallied from 0.7586 to 0.7606 as of 13:34 GMT today after falling to the low of 0.7570 intraday. EUR/AUD dropped from 1.3977 to 1.3938 but not before touching 1.4014 — the highest level since February 9.

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