SYDNEY: The Australian and New Zealand dollars edged higher on Wednesday after China’s third-quarter economic growth surprised on the upside, although the two currencies are still at the mercy of rising geopolitical risks and the US interest rate outlook.
The Aussie was 0.2% higher at $0.6379, after climbing 0.7% overnight to as far as $0.6380, which was partly driven by a 0.8% surge on the kiwi dollar. Near term resistance is at the 21-day moving average of $0.6382.
The kiwi dollar rose 0.1% to $0.5905, having fallen 0.5% overnight to as low as $0.5871 after a soft third quarter inflation report reduced the chance of a rate hike in November.
On Wednesday, data showed China’s economy grew 1.3% in the third quarter, accelerating from 0.5% in the previous quarter. On an annual basis, gross domestic product rose 4.9% in the period, beating forecasts of a 4.4% gain.
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