EUR/USD at 1.3540 after China GDP

The U.S. dollar set a two-month high versus the euro on Monday, having enjoyed a solid comeback last week after a string of mostly upbeat data convinced markets the Federal Reserve will continue its gradual withdrawal of stimulus.

The beleaguered Australian dollar got a bit of relief after China’s annual economic growth in the October-December quarter of 2013 came in at 7.7 percent, down from 7.8 percent in the previous three months but slightly ahead of market expectations for growth of 7.6 percent.

“It’s not a particularly good number but there wasn’t any drop to levels below the 7.5 percent threshold,” said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation.


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