The New Zealand and Australian dollars stayed slightly below recent highs on Monday, moving only marginally amid jitters over the possibility of new trade conflicts after a G7 meeting ended in contention. The New Zealand currency was largely flat, up 0.06 percent at $0.7035, below the one-month peak of $0.7060 hit the previous week.
An official data release had shown manufacturing sales, the final component of GDP data due out next week, had risen 1.4 percent in the first quarter, picking up the pace from the previous quarter. However, that did little to help the kiwi after US President Donald Trump threw the G7's efforts to show a united front into disarray following a verbal spat with Canadian Prime Minister Justin Trudeau.
Trading in the Aussie dollar was light with the country on holiday for the Queen's Birthday. The currency edged up 0.1 percent to $0.7606, below the six-week high of $0.76077 hit the previous week. Australian government bond futures eased, with the three-year bond contract down 1.5 ticks at 97.770. The 10-year contract was down 2.5 ticks to 97.1950.
New Zealand government bonds also eased, sending yields 1.5 basis points lower towards the long end of the curve.
The Group of Seven summit held in Canada laid bare a deep rift on trade and tariffs between Trump and other leaders as the US president tweeted he was backing out of the joint communique and lashed out against Trudeau. "With the only real conclusion being that trade uncertainties are going to persist, the NZD could find itself on the back foot. That said, it is likely to take a lot to break it out of recent ranges," said Philip Borkin, senior macro-strategist at ANZ Bank in a research note.