Rates At 0535 GMT Latest Change AUD/USD 1.0709 -0.75% AUD/JPY 87.12 -0.84% 6.25% Apr, 2015 3.7245% -0.0498 5.50% Mar, 2023 4.2204% -0.0662 10-Yr Spread To U.S. +214 bps -3 bps SFE Mar 3-Year Futures 96.27 +0.04 SFE Mar 10-Year Futures 95.905 +0.07 SYDNEY (Dow Jones)--The Australian dollar was lower Monday after China set a lower economic growth target for this year and traders braced for a deluge of data and central bank meetings. China Premier Wen Jiabao said in a speech the government is aiming for economic growth of 7.5% this year, after targeting an 8% expansion for each of the last seven years, in a widely expected move that indicates an willingness to reconcile with slower growth in exchange for more balanced and sustainable development. "The Australian dollar trended slightly lower during Asian trading hours, with the lowering of Chinese GDP targets creating some hesitation amongst traders," said Tim Waterer, senior trader at CMC Markets. At 0530 GMT, the Australian dollar was trading at US$1.0709 compared with US$1.0791 late Friday, and Y87.12 versus Y87.86. Traders were also hesitant to take on fresh risk ahead of the Reserve Bank of Australia's policy meeting Tuesday. Economists expect interest rates to remain on hold for a second meeting, but some surprises may emerge in Governor Glenn Stevens' statement. "The RBA is widely expected to leave the cash rate at 4.25%, so the accompanying statement will be the more important focus," said Sue Trinh, currency strategist at RBC Capital Markets in Hong Kong. "The RBA has sounded comfortable with where rates are, which has raised speculation that it may be done in its easing cycle," she added. Economic data Monday offered few clues to where the RBA may head from hear. Solid employment data mixed with weak company profits data left economists scratching their heads. According to a monthly survey by Australia and New Zealand Banking Group, employment advertising grew solidly in January and February. The total number of job ads in newspapers and on the internet rose 3.3% in seasonally adjusted terms in February, building on a 7.5% rise in January. Warren Hogan, chief economist at ANZ, said the data show the job market reached a low point in late 2011 and is now in recovery. An improving job market is evidence the economy retains a strong pulse, he added. "It casts some considerable doubt on the need for significant further easing by the Reserve Bank of Australia," Hogan said. On the flipside, Craig James, chief economist at CommSec, said the weak profit report and data showing the services sector had contracted meant there is still room for the RBA to cut interest rates if it wants. -By James Glynn, Dow Jones Newswires; 61-2-8272-4685; james.glynn@dowjones.com

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