The Australian and New Zealand dollars inched cautiously higher on Friday after Beijing offset a mixed bag of Chinese data by pledging more support for the economy, though risk sentiment remained all-too fragile after a rough week. The Aussie dollar firmed 0.1 percent to $0.7107, though that followed repeated failures to crack $0.7150 resistance and left it flat on the week.
The kiwi put on 0.2 percent to $0.6559 and was 0.8 percent higher on the week so far. It faces chart resistance at $0.6579 and $0.6600. China's economy grew 6.5 percent in the third quarter, a tick short of forecasts and the slowest pace since the global financial crisis.
The Aussie has fared better on the crosses. Concerns over Italy's budget deficit left the euro down 0.6 percent for the week at A$1.6136, while fresh doubts on Brexit shaved 0.7 percent from the pound to A$1.8340. Australian government bonds extended their recent bounce as US yields came off a little and Asian share markets struggled to get out of the red. The 10-year bond contract added 5 ticks to 97.3100, its highest in a couple of weeks, while the three-year bond contract rose 3 ticks to 97.895.
New Zealand government bonds held onto gains with 10-year yields at 2.685 percent from a top of 2.733 per cent on Thursday. Industrial output also disappointed, but retail sales and investment fared better suggesting efforts to support domestic demand were bearing some fruit. Crucially the Chinese still have an appetite for Australia's major commodity exports. Prices for iron ore, Australia's single biggest earner, hit a seven-month high this week, while coking coal made a 13-month top.
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