Trading in Asia on Wednesday hinges on a batch of Chinese data due around 02:00 GMT. China's annual economic growth is expected to have slowed to a 6-year low of 7% in 2015 Q1. Investors cut short yen positions early this week after comments from a key economic adviser to Japan's Prime Minister were taken to mean the currency was too weak.
Euro zone industrial production jumped much more than expected in February, according to data released later on Tuesday, rebounding from a brief slump in January and adding to signs that economic recovery was gathering pace. Eurostat said industrial production in the 19 countries using the euro rose 1.1% m/m, the strongest monthly increase in 10 months, for a 1.6% y/y increase.
USD nursed broad losses early on Wednesday, having snapped six straight sessions of gains after retail sales data failed to meet the market's lofty expectations. The dollar index slid 0.7%. U.S. retail sales rose 0.9% in March, just undershooting the consensus forecast of a 1.0 percent gain, while core sales were much softer. “The U.S. data over the rest of this week will become increasingly important, further misses will likely drive more sustained losses for the USD," analysts at ANZ wrote in a note to clients.
The immediate fortunes of the Australian and New Zealand dollars will also depend on the outcome of the Chinese numbers. Aussie popped above 76 U.S. cents overnight on the broad slide in the greenback, but could easily reverse and test a six-year trough of $0.7534 set two weeks ago.