Currencies Surge Amid Global Economic Shifts

The Australian dollar and Chinese yuan rose slightly following China's better-than-expected third-quarter growth. Meanwhile, the U.S. dollar continued its upward trajectory, driven by strong U.S. economic data and a dovish European Central Bank. Global currencies are reacting to political and economic developments, including Trump's election prospects.

The Australian dollar and Chinese yuan experienced slight gains on Friday after China's third-quarter growth figures surpassed expectations. This keeps pressure on policymakers to introduce more stimulus promptly. The dollar, set for its third weekly gain, benefits from dovish ECB actions and robust U.S. data, possibly impacting future rate cuts if Donald Trump wins the presidency.

China reported a 4.6% economic expansion for the third quarter. However, real estate investment significantly dropped in the first nine months. Despite the GDP release, the yuan remained largely stable. The Aussie saw minor growth, initially rising post-data before settling at 0.14% higher. The yuan's reaction was muted, with marginal increases both onshore and offshore.

Meanwhile, the euro has struggled, losing almost 1% for the week and falling through key technical levels, while the dollar strengthens notably against it and the yen. U.S. retail sales outperformed expectations and ECB's rate cut adds to the dollar's strength. Market disappointment with China's unclear economic recovery plans contributes to the yuan's significant weekly decline, despite slightly better growth numbers.

(With inputs from agencies.)