Events that marked the week:

On Tuesday, the Aussie surged to its highest level in nearly a week as investors scaled back expectations for how fast and far U.S. interest rates might rise this year after Fed Chair Janet Yellen emphasized the need to proceed “cautiously” on tightening policy. Underpinning the Australian Dollar were attractive bond yields with Australia’s two-year bonds paying 1.9%. Tracking a jump in U.S. Treasuries, Australian government bond futures rose, with the three-year bond contract five ticks higher at 98.08.

There were no data releases from Australia on Friday, however, from China official and Caixin Manufacturing PMI data was release Activity levels across China’s manufacturing sector expanded for the first time in eight months in March, according to a report from China’s National Bureau of Statistics (NBS). The government’s manufacturing purchasing managers index (PMI) rose 1.2 points to 50.2, marking the first expansion in activity levels seen since June 2015. It beat expectations for a smaller increase to 49.3.The vast majority of the strength was concentrated in larger firms, offsetting persistent weakness in small and medium sized enterprises.

The non-manufacturing PMI, also released by the NBS, came in at 53.8, some 1.1 points higher than February. Though modest, the expansion was the quickest seen since December last year.Though it tends to receive far less attention than the manufacturing report, this reading is perhaps more important given the government is looking to the services sector to help power China’s economic growth moving forward. A separate, private PMI reading from Caixin Media and Markit Economics rose to 49.7 in March to the highest level since February 2015. As with the official measure, readings above 50 signal improving conditions.

This week markets will be looking at:

Building Approvals (Monday 3:30)

Retail Sales (Monday 3:30)

Trade Balance (Tuesday 3:30)

Cash Rate/RBA Rate Statement (Tuesday 6:30)