Monday trading started off with risk aversion, following from Friday’s damp sentiment due to weak US data. This time it was disappointing growth numbers from China, which reported weaker-than-expected Gross domestic product (GDP) in the first quarter o this year that ended in March.
Since China is the world’s second largest economy and a huge driver of global trade, these numbers are causing concern to investors, who reacted by moving their money to safe haven assets such as yen and dollar.
According to a report from the National Bureau of Statistics said in Beijing today, GDP gave a reading of plus 7.7 percent from a year earlier, lower than the 8 percent forecast and down from 7.9 percent in the fourth quarter.
Adding to the gloomy numbers, March industrial production numbers increased less than estimated while retail-sales growth matched forecasts.
The MSCI index, the regional benchmark index, retreated for the highest level in 20-months.
USDJPY fell 0.6 percent to a session low of 97.54 from the open level of 98.17. EURJPY slid 0.9 percent to 127.53 from 128.76.
EURUSD dipped to $1.3064 from $1.3113. GBPUSD slipped to $1.5307 from a session high of $1.5384.
AUDUSD dropped to $1.0415 from $1.0522.