ForexLive Asian market wrap: Solid Chinese economic data sets off short covering

China's Q4 GDP slightly better than expected at 8.9% YoY Retail sales also strong at 18.1% Monti: Germany should show more support Japan November tertiary index -0.8% MoM Japanese government economic assessment: picking up but exports still weak FinMin Azumi: EFSF downgrade will not affect Japanese buying Asian equity markets +1.5% on average Gold and Oil also rise 1.5% to $1663/oz and $100.30/bbl respectivelyAnother relatively busy session in Asia with better-than-expected Chinese data leading to rallies in equity and commodity markets and short covering in the FX market.EUR/USD closed in North America at 1.2665 after a quiet session due to a US public holiday. Reports of very large bids between 1.2620/30 and again near 1.2600 would certainly have unnerved many EUR shorts, and there are a lot of them in the market at the moment. Early speculation of a good Chinese GDP number helped get the short-covering rolling and heavy stops were triggered above 1.2700 as the numbers were released. Lighter stops were subsequently tripped above 1.2730 and it's been quiet since. Ranges: 1.2647/1.2736AUD/USD has been busy with large buying noted from real money types as well as Sovereign names. Australain bonds are in big demand since the European woes escalated and many asset managers were noted buyers today. The pair opened in Asia at 1.0310 and it's been pretty much one-way traffic until barrier protection ahead of 1.0400 stalled the momentum. Ranges: 1.0298/1.0397USD/JPY 76.66/88; Cable 1.5308/69; EUR/CHF 1.2080/1.2109