* Greenback weakens after strong Chinese data
* Aussie dollar outperforms
* Kiwi drops after inflation slows (New throughout, updates trading and comments to U.S. market open, new byline, changes dateline, previous LONDON)
By Karen Brettell
NEW YORK, April 17 (Reuters) - The greenback weakened on Wednesday as better-than-expected economic data in China bolstered risk appetite and boosted the Australian dollar.
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. 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. The U.S. dollar is also heading into a period of the year when it has traditionally weakened.
“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,” said Osborne.
The Australian dollar outperformed on the Chinese data. The currency is sensitive to the economic fortunes of China, Australia's biggest trading partner.
"It is becoming very clear again this morning what really matters for the Australian dollar is China. The currency is up despite the fact that the RBA rate meeting caused negative sentiment yesterday," said Esther Maria Reichelt, an FX strategist at Commerzbank (DE:CBKG) in Frankfurt.
The New Zealand dollar, meanwhile, 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. on Wednesday also showed that the U.S. trade deficit fell to an eight-month low in February as exports to China surged, helping to eclipse a rebound in overall imports, which could boost economic growth estimates for the first quarter. bid prices at 9:30AM (1330 GMT) Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
Euro/Dollar
$1.1299
$1.1280
+0.17%
-1.48%
+1.1324
+1.1280 Dollar/Yen
111.9800
111.9900
-0.01%
+1.56%
+112.1600 +111.9300 Euro/Yen
EURJPY=
126.50
126.34
+0.13%
+0.22%
+126.8100 +126.2900 Dollar/Swiss
CHF=
1.0089
1.0078
+0.11%
+2.80%
+1.0092
+1.0068 Sterling/Dollar GBP=
1.3046
1.3048
-0.02%
+2.27%
+1.3068
+1.3030 Dollar/Canadian CAD=
1.3292
1.3349
-0.43%
-2.53%
+1.3371
+1.3274 Australian/Doll AUD=
0.7198
0.7175
+0.32%
+2.11%
+0.7205
+0.7154 ar
Euro/Swiss
EURCHF=
1.1401
1.1368
+0.29%
+1.31%
+1.1412
+1.1366 Euro/Sterling
EURGBP=
0.8661
0.8643
+0.21%
-3.60%
+0.8680
+0.8642 NZ
NZD=
0.6735
0.6761
-0.38%
+0.27%
+0.6775
+0.6672 Dollar/Dollar
Dollar/Norway
8.4686
8.4911
-0.26%
-1.97%
+8.4993
+8.4600 Euro/Norway
EURNOK=
9.5712
9.5847
-0.14%
-3.38%
+9.5963
+9.5711 Dollar/Sweden
SEK=
9.2324
9.2571
-0.11%
+3.00%
+9.2660
+9.2167 Euro/Sweden
EURSEK=
10.4330
10.4445
-0.11%
+1.65%
+10.4603
+10.4320