Australian dollar weighed down by disappointing Chinese growth

The Australian dollar remained slightly weaker against sterling yesterday, after a disappointing Chinese Growth report continued to weigh on market sentiment. Data revealed the Chinese economy grew by 6.1 percent in the fourth quarter, just under the forecast figure. However, there had been market speculation that the figure could have been as high as 8 percent, so the smaller figure disappointed markets. Australia is a large exporter of commodities and relies heavily on Chinese demand. The data also did nothing to reassure tentative investors that the global economy is starting to bottom out. The aussie as a high yielder will be one of the worst affected if risk aversion increases.