The Australian dollar languished near 2-1/2 year lows on Monday following weak economic data from China, the country's top trading partner, while its New Zealand cousin ticked up after five straight sessions of losses.
In the latest sign that demand in China is continuing to slow, figures over the weekend showed profit growth at its industrial firms slowed for the fifth consecutive month in September as sales of raw materials and manufactured goods ebbed.
In response, the Australian dollar AUD= , which is often traded as a liquid proxy for the yuan, slipped 0.1 percent to $0.7086, not far from Friday's trough of $0.7018 which was the lowest since early 2016.
The antipodean currencies have fallen steeply against their U.S. cousin since the start of the year largely on diverging policy with the U.S. Federal Reserve which is on a tightening path.
Australian and New Zealand central banks have repeatedly emphasised the need for interest rates to remain at record lows for some while yet.
In addition, worries about the Sino-U.S. trade war have weighed on growth-linked currencies such as the Aussie.
The currency is already down about 2 percent so far in October, and has weakened in six of 10 months so far this year.
"The Australian dollar remains unlikely to look like a screaming buy this week," said David Cottle, analyst at DailyFX.
"However, investors will get a look at official domestic consumer prices. Those data come due on Wednesday."
Annual headline CPI is seen at 1.9 percent for the third quarter-ended September, according to a Reuters poll, with core measures, closely watched by the Reserve Bank of Australia (RBA), also seen at 1.9 percent.
Inflation has undershot the central bank's 2-3 percent target band for more than two years now and is the single biggest reason it has left interest rates at 1.50 percent since last easing in August 2016.
Across the Tasman Sea, the New Zealand dollar NZD=D4 added 0.2 percent to $0.6521 after losing 1.3 percent last week.
The currency is down 1.5 percent so far this month. For the year, it has already lost 8 percent of its value.
New Zealand will see monthly data on building approvals and business activity later this week.
New Zealand government bonds
0#NZTSY= gained, sending yields about 2 basis points lower across the curve.Australian government bond futures were higher too, with the three-year bond contract YTTc1 up 2 ticks at 97.970. The 10-year contract YTCc1 climbed 2.5 ticks to 97.42.
