China's Economic Growth Market Influence? This is what is happening in the financial markets

<p>&nbsp;The US dollar was little changed on Wednesday after surging the previous day, with better-than-forecast growth in China helping to dampen the dollar's gains.</p><p><br /></p><p>An explosion at a hospital in Gaza caused the currency's movement to fluctuate slightly and traders were wary of the possibility of a wider conflict between Israel and the Palestinian militant group Hamas.</p><p><br /></p><p>Official data showed China's economy grew by 1.3% in the third quarter, up from 0.5% in the previous quarter and beating market forecasts of a 1% increase. Industrial production increased and unemployment decreased.</p><p><br /></p><p>The US dollar index was slightly higher at 106.16 against six major currencies. It has strengthened by 0.53% on Tuesday but is still below its eleven-month high of 107.34 last week.</p><p><br /></p><p><br /></p><p>China's yuan hit a one-week high of 7.2905 per dollar, though later retreated to 7.316. China-sensitive Australian and New Zealand currencies also rose before paring their gains.</p><p><br /></p><p>The euro was down 0.34% at $1.0537, while sterling was steady at $1.2179 after data showed British inflation failed to fall as expected in September.</p><p><br /></p><p>Since mid-July, the yield on 10-year US debt securities has risen by about 100 basis points and the dollar index has rocketed around 7% as the US economy shows no signs of slowing down.</p><p><br /></p><p>The yen was last slightly higher at 149.68 against the US dollar. The Bank of Japan on Wednesday announced a surprise bond purchase of $2 billion to curb downward pressure on yields.</p><p><br /></p><p>The 150 yen mark has become an important psychological level after previous government interventions to support the Japanese currency took place around that level. In early October, the yen made a significant rally after dipping below 150, although it later fell again and early indications were that Japan was not intervening.</p>