The Australian dollar (AUD) erased the 0.5% point loss against the US dollar that it had made after an official Chinese paper reported the economy may slow more sharply than expected in the second half of this year.

The Japanese yen, on the other hand, rose slightly against the US dollar and euro in Asia today as weaker-than-expected Chinese economic data added to uncertainty over the global economic outlook, prompting some investors to buy the JPY. Sliding regional stock markets also supported the yen by fanning concerns over global growth. Some traders said the Japanese currency could gain more ground if stock prices fall worldwide.

China's economic growth slowed to 10.3 percent in the second quarter from 11.9 percent in the first quarter in response to the fading of government fiscal and monetary stimulus as well as a high base of comparison a year earlier. With Chinese data now out of the way, the market's focus is likely to shift back to the strength of US economy, traders are now saying.