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FOREX-Dollar steady before batch of Chinese data

Published 12/10/2009, 07:47 PM
Updated 12/10/2009, 07:51 PM

* Raft of Chinese data for November due at 0200 GMT

* Strong readings could lift Aussie, kiwi, cross/yen

* But investors likely to avoid risk-taking at year-end

By Kaori Kaneko

TOKYO, Dec 11 (Reuters) - The dollar was steady against major currencies on Friday as investors awaited a series of Chinese data after some improvement in U.S. figures the previous day indicated the economy remained on a steady growth path.

Chinese indicators for November are expected to show the economy turned the corner in three important areas last month, with consumer prices, exports and imports likely to rise in annual terms for the first time since the global financial crisis struck.

Sources said on Thursday that CPI rose slightly from a year earlier and new lending in local currency loans fell back.

"Since Australia and China have a close economic relationship, stronger Chinese data will likely lift the currency," said Minoru Shioiri, chief manager of FX trading at Mitsubishi UFJ Securities.

"That said, investors are less inclined to take fresh risks at the year-end."

Others also said the market was tilted towards avoiding risk on persisting worries about sovereign debt in Europe.

The dollar edged up 0.2 percent to 88.35 yen from late U.S. trading on Thursday.

The Japanese currency fell on Thursday after separate reports showed the U.S trade deficit narrowed in October and the four-week moving average of U.S. jobless claims fell for a 14th straight week.

The euro was steady at $1.4733.

The Australian and New Zealand dollars were steady after Australian jobs data on Thursday raised expectations of another rate hike and the Reserve Bank of New Zealand signalled rates may be raised sooner than previously thought.

The Aussie dollar stood at $0.9157, after rising as far as $0.9190 on Thursday. The kiwi dollar was flat at $0.7285, after rising more than 1 percent the previous day.

U.S. retail sales for November are due at 1330 GMT and will be watched for clues about the strength of consumer demand. Economists in a Reuters survey expect a 0.7 percent rise compared with a 1.4 percent increase in October. (Reporting by Kaori Kaneko; Editing by Joseph Radford)

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