SYDNEY/WELLINGTON (Reuters) - The Australian and New Zealand dollars inched up on Tuesday as smiles at the start of the U.S.-North Korea summit boosted risk assets, though trading volumes were low as worries lingered about a global fight over tariffs.
The Aussie <AUD=D4> added 0.1 percent to $0.7615 from Monday's low of $0.7575. The Aussie has been stuck in a$0.7515/7620 range for several days. It broke the band to go as high as $0.7677 last week, but failed to sustain at those levels.
The New Zealand dollar <NZD=D4> climbed 0.1 percent to $0.7030, just above a one-week trough of $0.6998 touched earlier in the session.
"Political theatre could shape market trading as a summit between the leaders of the USA and North Korea begins in Singapore," Michael McCarthy, chief strategist at CMC Markets and Stockbroking, said in a note.
U.S. President Donald Trump and North Korean leader Kim Jong Un smiled for cameras after 41-minutes of one-on-one talks just months after they traded insults and tensions spiralled in the region over the latter's nuclear programme.
Still, most analysts were worried about the threat of a global trade war after Trump derailed the Group of Seven's efforts to show a united front, backing out of a previously agreed joint communique over the weekend. The action drew criticism from Germany and France, and Trump called Canadian Prime Minister Justin Trudeau "very dishonest and weak."
"Trade concerns remain an important near term risk for markets," McCarthy said. "The conflicting signals may come back to bite investors, but in the short term are largely ignored as noise."
Data from the Australian Bureau of Statistics (ABS) showed the value of housing finance commitments fell again in April, as did the share of borrowing by property investors.
Separate data showed a gauge of Australian business conditions eased in May but stayed near historical highs.
In New Zealand, data showed electronic retail spending rose 4.2 percent in May from a year earlier, falling short of analysts' expectations.
New Zealand government bonds <0#NZTSY=> eased, sending yields 0.5 basis points higher along the curve.
Australian government bond futures were barely changed, with the three-year bond contract <YTTc1>down half a tick at 97.770. The 10-year contract <YTCc1> added half a tick to 97.1975.
(Editing by Richard Borsuk)
