Australian Dollar Falls As Chinese Economic Growth Slows To 6-yr Low

The Australian dollar declined against its major rivals on Wednesday, as China's economy grew at the slowest pace in six years in the first quarter, casting doubts over whether the nation could attain its growth target in 2015.

Data from the National Bureau of Statistics showed that China's gross domestic product expanded 7.0 percent on year in the first quarter of 2015, coming in at 14,066.7 billion yuan.

The headline figure was in line with expectations while slowing from 7.3 percent in the previous three months.

China's industrial production gained just 5.6 percent on year in March - shy of forecasts for an increase of 7.0 percent and down from 7.9 percent in February.

Retail sales advanced an annual 10.2 percent, also below expectations for 10.9 percent and down from 11.9 percent in the previous month. Sales were up or 0.71 percent on month.

China is Australia's biggest trading partner, and weak reports from China could undermine Australia's trade prospectus.

The aussie traded in a mixed manner on Monday. While it fell against the euro and the kiwi, it was up against the greenback and the yen.

The aussie edged down to 1.4010 against the euro, from an early high of 1.3916. The next possible support for the aussie is seen around the 1.41 mark.

Reversing from early highs of 91.28 against the yen and 0.7631 against the greenback, the aussie weakened to 90.73 and 0.7579, respectively. If the aussie extends slide, it may find support around 90.00 against the yen and 0.75 against the greenback.

The aussie fell to 8-day lows of 0.9473 against the loonie and 1.0077 against the kiwi, from yesterday's closing values of 0.9514 and 1.0133, respectively. The aussie may possibly find downside target around 0.94 against the loonie and 1.00 against the kiwi.

Looking ahead, Eurozone trade data for February are due shortly.

At 7:45 am ET, European Central Bank is scheduled to announce its decision on interest rates. The bank is forecast to retain refinancing rate at 0.05 percent. At 8:30 am ET, ECB President Mario Draghi holds press conference.

In the New York session, Canada manufacturing sales for February and existing home sales for March, as well as U.S. industrial production for March, NAHB housing market index for April and Federal Reserve's Biege book report are set for publication.

The Bank of Canada's interest rate announcement is due at 10:00 am ET. The bank rate is seen keeping on hold at 0.75 percent.