The Australian and New Zealand dollars modestly trimmed losses on Tuesday after Singapore skipped a chance to further ease policy, triggering a broad pullback in long US dollar positions. The Australian dollar edged up to $0.7618, from an early $0.7563 low. Yet that only partly recouped Monday's 1.2 percent drop when disappointing Chinese March trade figures fanned worries about slowing growth in Australia's biggest export market.
Support was seen at the previous session's low of $0.7553 and then $0.7534, the six-year trough touched earlier this month. Resistance was seen at $0.7688, a retracement level of its March-April decline.
Underpinning the Aussie was a marked improvement in Australian business conditions in March, according to a private survey.
Interbank futures imply around a 60 percent chance of another interest rate cut in May, rising to 100 percent by June. The Reserve Bank of Australia (RBA) eased to record lows of 2.25 percent in February.
The New Zealand dollar edged up to $0.7481, having touched a low of $0.7422 on Monday. A private think tank survey on Tuesday showed business sentiment stayed robust in the first quarter and consistent with economic growth well above average.
Australian government bond futures were firm, with the three-year bond contract up 1 tick at 98.320. The 10-year contract added 2 ticks to 97.6750.
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