LONDON, March 1 Reuters The dollar eased and China39;s yuan gained on Wednesday after China39;s manufacturing activity expanded at its fastest pace since April 2012, while the euro rose after regional German price data added to inflation worries.

The Australian and New Zealand dollars were also among the beneficiaries of the robust Chinese economic data, which smashed expectations with the official manufacturing purchasing managers39; index PMI shooting up to 52.6 last month from 50.1 in January.

Similarly, China39;s nonmanufacturing activity grew at a faster pace in February, while the CaixinSP Global manufacturing PMI reading for last month likewise surpassed market expectations.

The onshore yuan finished the domestic session at 6.8854 per dollar, the strongest close since Feb. 21, while the offshore yuan jumped 1 to 6.8811 per dollar, set for its largest oneday gain since late November.

The data confirms expectations that the growth outlook has improved quite significantly in China, so it39;s positive for risk sentiment, said Niels Christensen, chief analyst at Nordea.

This has put the dollar on the defensive.

The kiwi surged 0.9 to 0.6242, while the Aussie gained 0.5 to 0.6762, reversing the slide to a twomonth low earlier on Wednesday following soft domestic economic data.

The antipodean currencies are often used as liquid proxies for the yuan.

Meanwhile, data from Germany39;s most populous state, North RhineWestphalia, showed consumer prices rose 8.5 on an…