Australian Dollar Backs Off After Failed Rally

The Australian dollar attempted to rally with the help of Chinese economic data released today. The currency failed to maintain its rally and currently trades near the opening level against some currencies (like the US dollar) and below the opening against others (like the Japanese yen).
China’s annual economic growth slowed a bit to 6.7% in the first quarter of this year from 6.8% during the previous three months but was in line with analysts’ forecasts. Other economic indicators were either also within expectations or even better. Yet after the initial surge of optimism traders started to wonder whether the signs of improvement mean that China is not going to implement additional stimulus. Such thoughts are not helpful to the market sentiment.
AUD/USD traded around the open of 0.7694 as of 12:47 GMT today after rallying to 0.7734 earlier. AUD/JPY slid from 84.17 to 83.85 following the rally to 84.76.

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