By Swati Pandey
SYDNEY, April 8 (Reuters) - The Australian and New Zealand dollars stayed soft on Monday as investors shifted to the greenback on renewed optimism about the U.S. economy's health following a better-than-expected March jobs report.
The Australian dollar AUD=D4 eased 0.1 percent to $0.7097 although it was well within its recent trading range of 70-73 U.S. cents.
The currency ended last week a shade higher, helped by positive surprises on domestic data with retail sales, a measure of business conditions and job vacancies all topping market expectations. say a trade deal between the United States and China and further signs of strong momentum in the U.S. economy could push the risk-sensitive Aussie dollar higher.
Friday's data showed U.S. nonfarm payrolls rose by a solid 196,000 in March, topping expectations for 180,000 jobs. employment is a key indicator of global growth, so this positive reading helps to allay fears of a global slowdown," Western Union Business Solutions said in a note.
"Uncertainty surrounding the trade negotiations has been a drag on global growth and any resolution could ease concerns about a global slowdown."
Australia's export-heavy economy is largely reliant on world trade, so a pick-up in global activity together with free and open markets would prove a tonic for the Aussie dollar.
U.S. and Chinese negotiators wrapped up their latest round of trade talks on Friday and are scheduled to resume discussions this week to try to secure a pact that would end a months-long tit-for-tat tariff battle. New Zealand dollar wallowed near a more than two-month trough at $0.6732 after falling more than 1 percent last week, its second straight weekly loss.
The kiwi lurched lower late last month when the Reserve Bank of New Zealand (RBNZ) caught investors off-guard by signalling that the next move in interest rates could well be down. dovish tilt has sent the kiwi to an 11-week trough against the Aussie dollar AUDNZD=R . In contrast to the RBNZ, the Australian central bank has shown greater confidence in the domestic and world economies, saying the cash rate could go in either direction depending on data. Zealand government bonds 0#NZTSY= were slightly higher, sending yields about two basis points lower at the long end of the curve.
Australian government bond futures gained, with the three-year YTTc1 and the 10-year bond contracts YTCc1 off 2 ticks each at 98.605 and 98.11 respectively. (Editing by Richard Borsuk)