* Data on Thursday will provide clues on European economy
* Kiwi drops after inflation slows
By Karen Brettell
NEW YORK, April 17 (Reuters) - The greenback weakened against the
euro on Wednesday as better-than-expected economic growth data in
China bolstered risk appetite and a day ahead of the release of
closely watched economic data for the euro zone.
China's economy grew at a steady 6.4 percent pace in the first
quarter, defying expectations for a further slowdown, as industrial
production surged and consumer demand showed signs of improvement.
“Risk sentiment seems to have improved overnight on the back of
the strong Chinese data,” said Shaun Osborne, chief FX strategist at
Scotiabank in Toronto.
Investors are closely watching Chinese and European economic data
for signals that global growth is recovering.
The release of Purchasing Managers Indexes (PMIs) for the
manufacturing and service sectors in Europe on Thursday will provide
the next indication of the strength of the European economy.
Investment inflows into Europe have been improving, which may give
the euro a boost against the greenback.
“We’re at the upper end of the range for the dollar and we think
seasonal pressures should start to weigh a little bit more on the
dollar going forward. Generally this is about the time of year when
the dollar starts to soften up from a seasonal point of view,” Osborne said.
The Australian dollar jumped on the Chinese data before giving
back the gains. The currency is sensitive to the economic fortunes of
China, Australia’s biggest trading partner.
The Aussie weakened on Tuesday after the Reserve Bank of Australia
said that a cut in interest rates would be "appropriate"
should inflation stay low and unemployment trend higher.
The New Zealand dollar fell after data showed that annual
inflation slowed in the first quarter, which raised the odds of an
interest rate cut in the coming months.
Other data on Wednesday showed that the U.S. trade deficit fell to
an eight-month low in February as imports from China plunged,
temporarily providing a boost to President Donald Trump's
"America First" agenda and economic growth in the first quarter.
Currency bid prices at 1417 EDT (1817 GMT):
Description RIC Last U.S. Close Pct YTD Pct
High Bid Low Bid
Previous Change Change
Euro/Dollar EUR= $1.1295 $1.1280 +0.13 -1.52
Dollar/Yen JPY= 112.0400 111.9900 +0.04 +1.61
Euro/Yen EURJPY= 126.53 126.34 +0.15 +0.25
Dollar/Swiss CHF= 1.0108 1.0078 +0.30 +3.00
Sterling/Dollar GBP= 1.3031 1.3048 -0.13 +2.15
Dollar/Canadian CAD= 1.3343 1.3349 -0.04 -2.16
Australian/Doll AUD= 0.7167 0.7175 -0.11 +1.67
Euro/Swiss EURCHF= 1.1418 1.1368 +0.44 +1.44
Euro/Sterling EURGBP= 0.8666 0.8643 +0.27 -3.54
NZ NZD= 0.6716 0.6761 -0.67 +0.00
Dollar/Norway NOK= 8.4935 8.4911 +0.03 -1.68
Euro/Norway EURNOK= 9.5950 9.5847 +0.11 -3.15
Dollar/Sweden SEK= 9.2475 9.2571 +0.02 +3.17
Euro/Sweden EURSEK= 10.4470 10.4445 +0.02 +1.78
(Reporting by Karen Brettell Additional reporting by Tom Finn in
London; Editing by Bernadette Baum and Leslie Adler)
((Karen.Brettell@thomsonreuters.com; +1 646 223 6274; Reuters