Stronger Chinese data lift Aussie dolla Some risk appetite returned to the currency markets at the end of the week, with the Australian dollar one of the main beneficiaries of better economic data in China. The Aussie dollar rose 0.2 per cent to a session high of $1.0436 against the US dollar as retail sales, fixed asset investment and industrial production figures for China showed gains in October, easing fears of a hard landing in the world's second-largest economy. The Chinese data helped the Australian currency to shrug off earlier losses sustained after the Reserve Bank of Australia downgraded its growth forecasts for next year. The Japanese yen was softer amid the improved risk appetite in Asian trading, with the US dollar reaching a session high of Y79.62 and the Australian dollar rising 0.2 per cent to Y82.999. The euro was flat at $1.2750, having hit an earlier session high of $1.2790 as investment banks reported some closing of positions ahead of the weekend. The single currency ended the week on a low note, however, having sustained significant losses amid the market sell-off following President Obama's re-election and the subsequent concerns over the US fiscal cliff, the mixture of tax rises and spending cuts due to take effect in January. Concerns over developments in both Greece and Spain also did not help sentiment on the single currency during the week. The euro was barely affected even after the Greek parliament approved a crucial austerity bill to secure another round of funding on Wednesday, while increasing fears that Spain would not request a bailout until next year also weighed on the single currency. Analysts warned that the lack of action from the European Central Bank on Thursday was also proving to be negative for the euro, with some hoping for guidance on further rate cuts or easing from the ECB. "Normally, the euro would benefit from a less dovish ECB statement," said Valentin Marinov, currency strategist at Citigroup. [But] with data out of the eurozone likely to disappoint further from here, more evidence that the ECB is no longer as proactive could dent sentiment towards the euro.