The Australian dollar was on the defensive on Thursday after a disappointing reading on Chinese manufacturing overshadowed a solid report on domestic business investment.
Not helping were comments from President Donald Trump's chief trade negotiator that the United States would need to maintain the threat of tariffs on Chinese goods for years even if a deal was reached on trade.
The Aussie dollar AUD=D3 had lapsed to $0.7142 after failing to clear resistance around $0.7200 overnight. It has support just under $0.7130 with a major chart bulwark at $0.7070.
The New Zealand dollar NZD=D3 was in similar shape, having waned to $0.6839 from a top of $0.6902 on Wednesday. It has support around $0.6825 and $0.6758.
Both declined after surveys suggested factory activity in China shrank for the third straight month in February, while the service sector also slowed a little.
The manufacturing PMI was the lowest in three years and export orders fell to levels not seen since the global financial crisis.
The surveys deflated what had been an upbeat reaction to figures showing Australian business investment rose 2.0 percent in the December quarter, the largest increase in three years and handily above forecasts.
Firms were also positive on their future spending plans with the mining sector predicting the first increase in annual investment since 2013.
"Given the raft of global and domestic uncertainties the continued gentle upswing in business investment is encouraging," said Su-Lin Ong, head of Australian fixed income strategy at RBC Capital Markets.
"Together with public spending and net exports, it will be an important contributor to growth and help temper the likely moderation in household consumption that is unfolding."
Firms were in a more cautious mood across the Tasman according to the latest survey from ANZ Bank.
The survey's headline measure showed a net 30.9 percent of respondents expected the economy to deteriorate over the year ahead. That compared with a net 24.1 percent pessimism level in the previous poll in December.
Earlier, dairy giant Fonterra cut its annual earnings outlook but raised its 2018/19 forecast for milk prices paid to farmers, a boost to incomes in the key agriculture sector.
In debt markets, New Zealand government bonds
0#NZTSY= eased a touch, nudging yields up 1 to 2 basis points.Australian government bond futures also softened, with the three-year bond contract YTTc1 off half a tick at 98.355. The 10-year contract YTCc1 fell 3.5 ticks to 97.8950.
