April 14, 2012
The Australian dollar fell back from a 10-day high on weaker than expected Chinese economic growth data.
At 1700 AEST on Friday, the Australian dollar was trading at 103.85 US Cents, down from 103.91 cents on Thursday afternoon.
China is Australia's largest trading partner and a slowdown in growth there could have significant implications for Australian exports.
National Australia Bank currency strategist Emma Lawson said said the local currency rose above 104.50 US cents overnight.
Ms Lawson said this was its highest level since April 3 and that it rose on expectations that Chinese gross domestic product (GDP) data would show a nine per cent growth rate.
She said the local currency fell when official data released on Friday showed an annual growth rate of 8.1 per cent over the March quarter.
Economists had previously forecast a growth rate of 8.4 per cent.
"That data led to a sharp move lower in the Aussie dollar and we've been trading in a quiet session around 103.90 US cents this afternoon," she said.
"Some of the underlying numbers were not as bad but, because of the really strong positive sentiment overnight, traders were disappointed."
The data also showed Chinese retail sales were up 15.2 per cent for the quarter while industrial production was up 11.9 per cent.
Ms Lawson said the currency's movements overnight would depend on how European markets reacted to the Chinese data.