Better-than-expected Chinese growth data on Wednesday boosted Asian currencies, driving the yuan to a one-week high and putting a dampener on the U.S. dollar. A blast at a Gaza hospital, however, kept moves modest and traders on edge at the prospect of a widening conflict. U.S. President Joe Biden is due to visit Israel on Wednesday. Official data showed China’s economy grew 1.3% in the third quarter, accelerating from 0.5% in the previous quarter and topping market forecasts for an increase of 1%. Industrial output rose and unemployment fell. The dollar index was marginally lower at 106.19. The gauge, which tracks the greenback against six major peers, rose 0.53% on Tuesday but remains below an 11-month high of 107.34 touched last week.
“It’s had a really good run and it’s stalled a bit,” said Westpac analyst Imre Speizer. “Maybe it’s hitting the limits of this stage of the rally, and needs a bit of a correction.”