The Australian and New Zealand dollars inched higher on Friday as data showed China's demand for commodities remained robust in March, leaving both currencies holding hefty gains for the week. The Aussie dollar nudged ahead to $0.7769, to be 1.3 percent firmer for the week, though it continued to meet stiff resistance around $0.7785.
Chinese trade data showed exports unexpectedly dipped in March but imports topped forecasts. Figures for the first quarter, which smooth out the impact of the February Lunar New Year holidays, showed exports were still up a healthy 14 percent on the previous year, with imports rising almost 19 percent.
The New Zealand dollar was flat at $0.7370, a touch below an eight-week high of $0.7389 hit overnight. The currency was poised to rise 1.7 percent on the week, its largest gain in two months, as it weathered choppy global risk sentiment well.
New Zealand government bonds eased, sending yields 4 basis points higher at the long end of the curve. Australian government bond futures also slipped, with the three-year bond contract off 4 ticks at 97.790. The 10-year contract fell 5 ticks to 97.2750.
China's imports of iron ore, Australia's single biggest export earner, were steady at 271 million tonnes in the quarter thus defying speculation of a slowdown.
However, the threat of a Sino-US trade war continued to lurk in the background with the Wall Street Journal reporting the White House thought its hard-line stance was working and planned to escalate the pressure on Beijing. President Donald Trump also sowed confusion on Syria saying the US might attack soon, or might not.
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