By Candice Zachariahs Jan. 21 (Bloomberg) -- The Australian dollar advanced after a government report showed China’s fourth-quarter growth rose at the fastest pace since 2007, damping concerns of a slowdown in Asia’s second-largest economy. The so-called Aussie gained against all 16 of its major counterparts after a statistics bureau report showed China’s gross domestic product rose 10.7 percent from the same period a year ago, more than the median forecast of 10.5 percent in a Bloomberg survey. New Zealand’s currency pared losses after a report said the nation’s retail sales rose for a fourth month. “A longer duration to China’s economic expansion” will “be a good thing for the Australian dollar over the medium term and for commodity prices,” said Richard Grace, chief currency strategist in Sydney at Commonwealth Bank of Australia. “The Aussie can press on with some gains.” Australia’s currency climbed 0.6 percent to 83.52 yen as of 2:58 p.m. in Sydney from 83.04 in New York yesterday. It rose 0.2 percent to 91.20 U.S. cents from 91.01 cents in New York yesterday, when it touched 90.73, the weakest since Jan. 4. New Zealand’s dollar rose 0.2 percent to 66 yen. It fetched 72.08 U.S. cents from 71.97 cents before the retail sales report and 72.17 in New York. It yesterday touched 71.87 cents, the least since Dec. 30. New Zealand’s retail sales increased 0.8 percent in November from October, when they gained a revised 0.1 percent, seasonally adjusted, Statistics New Zealand said today in Wellington. New Zealand’s two-year swap rate, a fixed payment made to receive floating rates, rose to 4.48 percent from 4.46 yesterday. ‘Moderating’ Growth Gains in Australia’s dollar were limited on speculation China’s central bank will start raising its benchmark interest rate and tighten restrictions on the nation’s lenders after consumer prices rose 1.9 percent in December from a year earlier. The People’s Bank of China today guided three-month bill yields higher at an auction for the second time in two weeks, traders said. The Shanghai Composite Index weakened 0.3 percent, falling for a second day. “China has immediately undertaken a tightening in policy and the perception is that will lead to a moderation in China’s growth and could mean a slight slowing in global growth,” Commonwealth’s Grace said. The Aussie below 91 U.S. cents would be a good “medium-term buying opportunity,” he said. Australian government bonds rose. The yield on 10-year notes fell two basis points, or 0.02 percentage point, to 5.51 percent, according to data compiled by Bloomberg. The price of the 5.25 percent security due March 2019 gained 0.16, or A$1.60 per A$1,000 face amount, to 98.15. To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net.

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