By Cecile Lefort and Charlotte Greenfield
SYDNEY/WELLINGTON, June 1 (Reuters) - The Australian and New Zealand dollars were stung on Thursday by a private survey showing an unexpected slump in China's manufacturing activity.
The Australian dollar AUD=D4 fell to $0.7394, from $0.7431 earlier in the day. A break of $0.7370 would test a trough of $0.7329 touched last month.
The Aussie dropped around half a U.S. cent after a disappointing economic report from China, Australia's top export market.
A private survey of China's manufacturing activity contracted in May for the first time in nearly a year. That contrasted with an official survey released on Wednesday showing activity remained in expansionary territory. was enjoying a surprise rebound from retail sales today, for all of a couple of minutes before China's manufacturing PMI spoiled the party," said Matt Simpson, a senior analyst at ThinkMarkets.
Earlier in the session, domestic retail sales posted their best monthly sales in nearly three years in April with a rise of 1 percent, versus forecasts of a gain of 0.3 percent. ID:nFWN1IY002
Meanwhile, the euro EURAUD=R extended its rise, scaling a one-year high of A$1.5225. The common currency clocked a gain of more than 4 percent in May for the second consecutive month. A break of A$1.5363 would target the May 2016 high of A$1.5644.
The Aussie fell hard against the safe-haven Swiss franc to stand near one-year lows AUDCHF=R .
Across the Tasman sea, the New Zealand dollar NZD=D4 slipped to $0.7076, away from a three-month high of $0.7124 hit overnight.
It also lost ground against a sturdy euro which bounced to NZ$1.5916, from Wednesday's low just under NZ$1.5700 EURNZD=R .
Data at home showed terms of trade jumped 5.1 percent to the highest level since June 1973. Zealand government bonds 0#NZTSY= gained, sending yields 2.5 basis points lower at the long end of the curve.
Australian government bond futures held firm near six-month highs, with the three-year bond contract YTTc1 unchanged at 98.330. The 10-year contract YTCc1 edged up 1 tick to 97.5950, while the 20-year contract YXXc1 added 1.5 ticks to 97.0300. (Editing by Shri Navaratnam)