The Australian and New Zealand dollars flatlined on Tuesday as the latest batch of Chinese data proved frustratingly mixed, though the world second's largest economy did manage to pip forecasts for growth in the first quarter. The Aussie dollar was 0.2 percent lower at $0.7764, after earlier running into resistance at $0.7787.
The currency continued to benefit from generalised softness in its US counterpart, but needs to clear the 200-day moving average at $.7815 to turn the technical outlook bullish. Hopes that Chinese data might provide some momentum proved misplaced. While economic growth and retail sales just beat forecasts, misses for industrial output and fixed asset investment limited the market reaction.
The New Zealand dollar was a fraction lower at $0.7350, just under a recent two-month peak of $0.7395. New Zealand government bonds eased, sending yields 0.5 basis points higher along the curve.
Australian government bond futures dipped, with the three-year bond contract off 2 ticks at 97.740. The 10-year contract eased 1.5 ticks to 97.2300. "The kiwi held in a reasonably tight range overnight, as it awaits the next catalyst for direction...We are still of the mind that any further NZD strength should be faded," ANZ economists said in a research note.
At home, minutes of the Reserve Bank of Australia's (RBA) latest policy meeting only served to underline how little chance there was of an interest rate rise anytime soon.
While the Board agreed the next move in rates was more likely to be up than down, it saw "no strong case" for a move in the near term even as it notched up the longest period without a change in modern history.
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