* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Saikat Chatterjee
LONDON, Jan 17 (Reuters) - The Australian dollar and its
emerging market counterparts gained on Friday as Chinese data
showed pressure on the world's second-biggest economy may be
starting to diminish, with the offshore yuan rising to a
six-month high against the greenback.
Though China's economy grew 6.0% in the December quarter
from a year earlier, Beijing is widely expected to introduce
more stimulus measures in 2020 while investment and demand
remain sluggish. Chinese growth for all-2019 of 6.1%
was the slowest in 29 years,
"December data signaled a strong finish for the Chinese
economy and that suggests the Chinese economy may be primed for
a rebound in 2020," said Lee Hardman, a currency strategist at
MUFG in London.
An index for emerging market currencies .MIEM00000CUS rose
to its highest level since June 2018 while the Chinese currency
in the offshore market CNH=D3 rose 0.2% to 6.8636 yuan per
dollar, its strongest level since July 2019.
"The Chinese data overnight offered some cause for optimism
with the Phase 1 trade deal with the U.S. partially lifting the
cloud of uncertainty hanging over the economy," said Craig
Erlam, senior market analyst at OANDA.
The Aussie is often traded as a liquid proxy for the Chinese
yuan as the country's small, open economy is heavily reliant on
exports to China.
The local dollar AUD=D3 and its New Zealand counterpart
NZD=D3 rose 0.2% against the dollar respectively.
DOLLAR STURDY
But despite gains by emerging market currencies, the dollar
held its ground against its rivals .DXY and was on track for a
small weekly loss, with the dollar index tracking its strength
against six of its major peers little changed at 97.31.
Recent data has been mildly supportive of the greenback.
U.S. retail sales increased for a third straight month in
December, and the number of Americans filing claims for
unemployment benefits dropped for a fifth straight week last
week, showing that the labour market remained strong.
Elsewhere, the British pound GBP=D3 weakened 0.2% at
$1.3050 after worse-than-expected December retail sales.
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