Asian currencies caught a boost from better-than-expected Chinese economic data on Wednesday, driving the yuan to a one-week high and putting a dampener on the U.S. dollar which has rallied for weeks on end as U.S. yields have climbed.
A blast at a Gaza hospital also kept moves modest and traders on edge at the prospect of a widening conflict.
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%.
On Tuesday U.S. yields had shot sharply higher after data showed retail sales increased strongly, which had helped the dollar pile pressure on the low-yielding Japanese yen.
"Maybe it's hitting the limits of this stage of the rally, and needs a bit of a correction."
Persons:
Joe Biden, Woei Chen Ho, It's, it's, Imre Speizer, Sterling
Organizations:
U.S ., Israel, Wednesday, New, Tuesday, Bank of Japan, greenback, Treasury, Westpac
Locations:
Gaza, Singapore, New Zealand, Asia