The Australian and New Zealand dollars were stalemated against a broadly firmer US dollar on Friday, but advanced on the yen and euro as an upbeat survey on Chinese industry augured well for exports to the world's second largest economy. China's official Purchasing Managers' Index (PMI) rose to 51.8 in March, from the previous month's 51.6, as the industrial sector benefited from higher prices and a recovery in demand fuelled by a construction boom.
The Australian dollar was restrained on its US counterpart at $0.7642, having spent the whole week bounding around in a $0.7587 to $0.7679 range. The New Zealand dollar was pinned near the floor of the week's range at $0.6991, a level that marks major chart support. The Aussie fared far better on the euro, which fell back to A$1.3965 and away from a recent 11-week peak of $1.4309.
The single currency took a battering after data showed German inflation had slowed far more than expected in March, countering speculation the European Central Bank might soon move to unwind some of its aggressive policy stimulus. The Aussie also extended its rally on the yen, climbing to 85.64 from a three-month trough of 83.76 touched early in the week when safe havens had been in vogue.
Australian government bond futures eased in line with US Treasuries, with the three-year bond contract off 2 ticks at 98.040. The 10-year contract was also down 2 ticks at 97.2550. New Zealand government bonds tracked the global trend with yields up around 2 basis points across the curve.
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