Aussie dlr firm as Fed keeps easy policy, NZD lags

SYDNEY/WELLINGTON, March 21 (Reuters) - The Australian dollar held steady on Thursday as the Federal Reserve said it would maintain easy monetary policies to boost U.S. economic growth, while fears about a default by Cyprus eased for now, helping improve sentiment.

* The Aussie trades at $1.0380 little changed from Wednesday's late local level, after a tight $1.0370 to $1.0398 range overnight. Support is seen initially at $1.0350, Tuesday's low, with resistance at $1.0415.

* New Zealand dollar underperforms and is a touch softer at $0.8226 vs Wednesday's $0.8230, having ranged $0.8213 to $0.8242 overnight. Kiwi seen supported initially at 200-day moving average just below $0.8200, with resistance around $0.8280.

* Fed decides to continue its aggressive efforts to stimulate the U.S. economy, saying it would take into account risks posed by its policies but also how much work still needs to be done to lower unemployment.

* The euro lifts from a four-month low against the dollar as immediate fears about a financial meltdown in Cyprus eased. Cypriot banks ordered to stay shut until next week as the small Mediterranean country looks for another solution, including a possible new loan from Russia.

* The euro recovers the previous day's losses against the Antipodeans, rising to A$1.2458 from A$1.2400 and NZ$1.5721 from the two-month low of NZ$1.5577.

* Conversely, the improvement in sentiment sees the Antipodeans rise on the yen. Aussie up 1.1 percent at 99.62

and the kiwi 0.7 percent higher at 78.95 .

* New Zealand dollar generally underperforming across the board, having been buffeted by fears of the impact of drought and persistent chatter about the currency being overvalued.

* Kiwi is back within sight of a 10-week low seen last week against the Aussie at NZ$1.2628 .

* Key local event is New Zealand GDP data on Thursday, with markets expecting 0.9 percent growth on the previous quarter, to be 2.3 percent higher than the same quarter a year ago.

* Later in the day, flash China PMI data is due. In February, the PMI slipped to a four-month low.

* Australian debt futures give back previous session's gains, with the three-year bond contract down 0.070 points to 96.970, while the 10-year contract eases 0.070 points to 96.405. They touched ten-month lows last week.

* New Zealand government bond prices softer as well, with yields 2 basis points higher along the curve.

(Australia and New Zealand bureaux)

(([e-mail])(612 9373 1813)(Reuters Messaging: [e-mail]))

Keywords: MARKETS AUSTRALIA NEWZEALAND/FOREX