Aussie and NZ dlrs hover above lows ahead of RBA rate call
WELLINGTON, Oct 2 (Reuters) - The New Zealand and Australian dollars were supported at the lower end of recent ranges on Tuesday after failing to capitalise on better risk sentiment as investors waited for a central bank rate decision.
* The Aussie sits at $1.0361 from Monday's late local level of $1.0338, after traversing a $1.0332 to $1.0404 range overnight. It gained in European trade but gave back its gains in New York.
* Aussie likely to mark time ahead of the Reserve Bank of Australia's rate review later in the day. Near term support seen around the 200-day moving average at $1.0340 with resistance at $1.0410, near the 20 DMA.
* The New Zealand dollar similarly finds a footing around $0.8274 close to Monday's local close, after managing a $0.82742 to $0.8323 offshore range.
* The kiwi hit a six-month high of $0.8357 on Friday and has gained around 11 percent over the past four months, but may be running out of puff. Near term kiwi support at $0.8250 and below that $0.8230, with first hurdle at $0.8310 and then $0.8325.
* The dollar falls from a three-week high and the yen also eases as a rise in U.S. manufacturing activity prompts a sell-off in safe-haven currencies.
* U.S. manufacturing sector last month grew for the first time since May, getting a boost from new orders. Germany's purchasing managers' index (PMI) hits its highest reading since March, although still in contraction.
* Other euro zone PMI readings show the region still firmly stuck in contraction, although the decline may have slowed.
* The euro notches gains against the Antipodeans, pushing up around 0.5 percent to A$1.2429 and NZ$1.5571 .
* Investors looking to the RBA's rate decision at 0430 GMT.
* Interbank futures have narrowed the odds, factoring in around a 70 percent chance of a 25 basis point-cut to 3.25 percent. Economists less convinced, with 13 of 19 surveyed by Reuters forecasting the RBA to keep rates on hold.
* A decision to hold rates could underpin the Aussie, and would also likely shine on the kiwi. A rate cut would likely see the Aussie fall and kiwi gain on the cross rate .
* Aussie claws back some of the ground lost to the kiwi in the past week edging up 0.2 percent to NZ$1.2522. It hit a 12 month low of NZ$1.2456 on Monday.
* Australian government bond futures fall, with the 10-year contract down 0.035 to 97.085, after touching a two-month peak on Monday. The three-year contract falls 0.04 points to 97.630.
* New Zealand government bonds mostly flat but with a hint of a bid tone at the long end.
((Australia/New Zealand bureaux)(+61 2 9373 1800/+64 4 802 7980))
Keywords: MARKETS AUSTRALIA NEWZEALAND/FOREX