The Australian and New Zealand dollars were knocked off session highs on Friday after data showed China's economy grew at its weakest pace in nearly three years in the first quarter, confounding rumours of an upside surprise. The Aussie dollar slid as deep as $1.0383, from an early high of $1.0453, after China reported GDP growth of 8.1 percent yr/yr in the first quarter. That was below forecasts of 8.3 percent and way under the rumoured 9 percent that had spread through markets overnight.
It last stood at $1.0395, but was still on track to end the week nearly 1 percent higher. The currency is now seen capped around $1.0450, today's high and also the bottom of the daily Ichimoku cloud. Support is expected in the $1.0350/70 zone. The Aussie also lost ground on the yen, retreating to 84.19 from a one-week high around 84.63. Versus the kiwi, it fell to a fresh six-month trough of NZ$1.2505. The New Zealand dollar fared a little better than its Australian counterpart, managing to hold around $0.8290, just above its New York close, after short covering sent it to a six-week high of $0.8320 following the Singapore data.
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