The world’s second biggest economy is stabilising as better-than-forecast growth figures overnight boosted the renminbi. Oil prices hit a 2019 high as China defied forecasts of a slowdown and expanded by 6.4 per cent year on year in the first quarter of the year, prompting Chinese stocks to rally.
Alongside gross domestic product (GDP), Chinese industrial output bounced back, rising at the fastest pace since 2014.The performance is widely attributed to US President Donald Trump backing down from threats to escalate his trade war and the Chinese government’s stimulus measures beginning to boost growth.
The upbeat readings also relieved investor anxiety over sputtering global demand.
The Australian Dollar was the net benefactor, climbing by as much as 0.5 per cent to a two-month high of $0.7174. Oil prices also got a boost, rising above the $72 a barrel level for the first time since November to a high of $72.08.
Meanwhile, the US Dollar sagged against the Euro after the Chinese data eased concerns over a global economic slowdown.
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