• China targets 7.5% growth in 2012, 4% inflation
  • Wen aims to boost domestic consumption, in wide-ranging economic speech
  • China HSBC services PMI 53.9 vs 52.5 exp
  • Official China non-manufacturing PMI 48.4 vs 52.9 prior
  • Australia Q4 company profits -6.5% q/q vs 0.0% exp
  • Australian Q4 inventories +1.4% vs +0.3% exp
  • Australia TD Securities/MI inflation +2.0% vs 2.2% prior
  • NZ monthly report calls for a pickup in H2 growth
  • Putin wins Russian Presidency

The takeaway from China lowering it’s growth target to 7.5% after eight years where the official estimate was 8% is that the country is focusing on a more balanced and sustainable growth. This could mean less appetite to cut rates, which was reflected in lower risk trades early on.

EUR/USD opened marginally lower at 1.3192 but climbed to 1.3214 after bouncing off reported bids ahead of 1.3180. A second run at those bids has also held, leaving the pair at 1.3200.

USD/JPY opened at 81.80 but offers from exporters at 81.85 led to a quick decline to 81.52. Worries about risk events and stocks also drove a flight to yen safety. After the Tokyo fix, USD/JPY bounced to 81.78 before settling back to 81.60.

AUD is the laggard so far on worries of slowing Chinese growth. After opening at 1.0739 it was a steady march lower until a bounce from 1.0703 in the past hour.