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Aussie & kiwi dlrs pinned down, sentiment bearish

Sunday, 7 Oct 2012 | 9:28 PM ET

WELLINGTON/SYDNEY, Oct 8 (Reuters) - The Australian and New Zealand dollars held near multi-week lows on Monday, as investors remained cautious about the outlook for the global economy despite better-than-expected U.S. jobs numbers at the end of last week.

* Aussie nursing hefty losses at $1.0170, having dipped on Friday to $1.0150, its weakest since mid-July, while the euro hovers near four months highs at A$1.2792 .

* Kiwi crawls back to around $0.8193 , having hit a one-month low of $0.8151 early, from New York's close of $0.8185. Kiwi down 1.6 pct this month and looking to test lower levels, with next support seen around Sept 10's low of $0.8130, then the psychological level of $0.8100.

* Sentiment bearish with the Aussie particularly hit since last week's rate cut by the Reserve Bank of Australia (RBA) and soft economic data at home. The central bank trimmed its cash rate by 25bps to 3.25 pct and markets are wagering it could ease again in November.

* Interbank futures pricing shows a 64 pct chance of a 25 basis point-cut next month with OIS markets showing nearly 100 basis points worth of easing over the next 12 months.

* This explains the Aussie plunge to its weakest in more than a year against the Canadian dollar . Last at C$0.9938, having shaved eight cents since February.

* RBA Governor Glenn Stevens shed no new light on the economy during his appearance before the House Economics committee.

* Australian job ads in newspapers and on the internet fell 2.8 pct in September, a sixth straight monthly decline that points to some softening in labour demand, a private survey showed on Monday.

* The official labour report is due on Thursday. Economists forecast unemployment rate to tick up to 5.3 pct, providing one reason for the Reserve Bank of Australia (RBA) to cut rates again.

* Aussie support seen at $1.0155, the Oct 5 low. It has fallen around 2 pct so far this month. With data showing a large drop in speculative Aussie long positions and traders citing macro funds running chunky shorts, the local dollar has room to fall further, including a test to parity.

* The New Zealand Green Party's suggestion of printing money to invest in disaster fund bonds as a way to lower the kiwi dollar, is dismissed by government Ministers as wacky and "snake oil" with considerable inflation risk.

* Aussie steadies around NZ$1.2410 , having hit a one year low of NZ$1.2361 last week.

* Euro softer on the kiwi at NZ$1.5896, from NZ$1.5925 early .

* NZ government bonds lower in line with U.S. Treasuries, with yields 1.5 basis points higher along the curve.

* Australian government bond futures retreat further from two-month highs touched last week with three-year contract

steady at 97.630. The 10-year contract eases 0.020 points lower at 97.040.

((Australia/New Zealand bureaux)(+61 2 9373 1800/+64 4 802 7980))

Keywords: MARKETS AUSTRALIA NEWZEALAND/FOREX