The Australian and kiwi dollars held firm on Friday after China data shows strong growth, supporting the outlook for commodity prices, though markets were wary of US inflation figures due later in the day. The Australian dollar hovered around $1.0527, from $1.0533 in New York. It barely took notice of China's slightly higher than forecasted inflation at 5.4 pct, a level that is reinforcing the case for further tightening.
"The rumour that was out yesterday (about the Chinese numbers) proved correct today so it was already in the price," said Michael Turner, strategist at RBC Capital Markets. The New Zealand dollar added about 20 ticks in the local session to $0.7948, poised to overtake a five-month high of $0.7959 struck overnight. The kiwi's relentless rise seems likely to result in a tilt at $0.7976, it November 8 high, which would put it at levels not seen since April 2008.
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