A south-bound US equity market has seen the Aussie dollar retreat from yesterday's highs as investors focused on mixed earnings from corporate America, namely Goldman Sachs which reported worse than expect earnings.
The local unit rose to highs of 100.78 US cents before succumbing to pressure a downturn in US stocks which has dampened investor appetitive for higher yielding assets. Nevertheless, it's been a solid run from the Aussie over the last 24 hours with price action once again making a convincing break through US dollar parity and remains on a perfect footing to resume an upward trajectory.
Today is a particularly important day for the local unit and the economy as a whole with the much anticipated release of Chinese growth data. China's Gross Domestic Product is expected to fall from 9.6 to 9.4 percent with Consumer prices also expected reflect the recent round of tightening measures to fall from 5.1 to 4.6 in the month of December. Industrial production is estimated to have recorded annual growth of 13.4 percent from a previous 13.3 percent.
In what is said to be a leak from Chinese officials, yesterday a Hong Kong television broad caster reported the Chinese economy grew at an annual pace of 10.3 percent - well in excess to economist estimates, while showing headline inflation dropped in line with consensus from 5.1 to 4.6 percent.
Whatever today's data may be bring, there's little doubt it has the propensity to shift price action to a large degree and given the high growth and lower inflation scenario reported yesterday we're looking for a significant boost in the local unit.
However it's important to note these Chinese whispers have proved to be a fabrication or off the mark in the past and today's data will remain a primary driver of the local unit. At the time of writing the Aussie dollar is buying 99.7 US cents.