SINGAPORELONDON, Oct 18 Reuters Betterthanexpected Chinese growth data on Wednesday boosted Asian currencies, driving the yuan to a oneweek high and putting a dampener on the U.S. dollar.

A blast at a Gaza hospital, however, kept moves modest and traders on edge at the prospect of a widening conflict. U.S. President Joe Biden is due to visit Israel on Wednesday.

Official data showed China39;s economy grew 1.3 in the third quarter, accelerating from 0.5 in the previous quarter and topping market forecasts for an increase of 1. Industrial output rose and unemployment fell.

China39;s yuan hit a oneweek high of 7.2905 per dollar, though it then retreated to 7.312. The Chinasensitive Australian dollar , was last up 0.24 at 0.6381, while the New Zealand dollar was 0.18 higher at 0.5907.

The Kiwi and Aussie are outperforming, but I39;m surprised that the data is not having a little bit more of an impact given how negative views have been on Chinese growth, said Erik Nelson, macro strategist at Wells Fargo.

Nelson said investor reaction to the IsraelHamas conflict had so far been muted. If it spread to other regions which get pulled into the conflict, like Iran, then that39;s another story, but we39;re not there yet.

The dollar index was marginally lower at 106.19. The gauge, which tracks the greenback against six major peers, rose 0.53 on Tuesday but remains below an 11month high of 107.34 touched last week.

It39;s had a really good run and it39;s stalled a bit, said…