Australian, New Zealand dollars up after China surge

The Australian and New Zealand dollars advanced after reports showed better-than-expected industrial production and retail sales in China which boosted the export outlook for the South Pacific nations.

The currencies of the two countries reversed earlier declines against the US dollar. 

The Australian dollar weakened earlier following the Reserve Bank reducing its 2013 growth forecast.

It was up 0.2 per cent to $1.0427 as of 5:42 pm in Sydney after a fall of as much as 0.3 per cent while the New Zealand dollar was up 0.3 per cent today to 81.73 US cents, reversing an earlier decline of 0.3 per cent.

The Aussie or the Australian dollar as it is called, is set to gain 0.9 per cent this week as its New Zealand peer declined 1 per cent since 2 November, the biggest decline among the US dollar's major peers.

The New Zealand dollar was down to a five-week low against its Australian counterpart as increasing unemployment at home and stronger job prospects across the Tasman fueled expectations the gap in interest rates would not narrow any time soon.