Wires

Aussie dlr slips to 3-month low, sentiment bearish

WELLINGTON/SYDNEY, Oct 8 (Reuters) - The Australian and NewZealand dollars started weaker early on Monday, with caution inWall Street offsetting encouraging U.S. payroll data whilemarkets still await Spain's request for aid.

* Aussie at around $1.0156 from NY's close of$1.0177, having dipped to $1.0150, the lowest since July 13.Aussie support now found at $1.0155, an Oct 5 low.

* It has fallen around 2 pct so far this month, weighed bythe surprise rate cut last week and the prospect of more easingas the Chinese economy slows.

* Market pricing implies an 80 pct chance of a cut to 3.0percent next month. The market has 90 basis points worth ofeasing factored in over the next 12 months.

* RBA Governor Glenn Stevens appears before House Economicscommittee at 2300 GMT to discuss a scandal at a banknotesubsidiary. It is not clear whether he will address the economy.

* Aussie pressure also weighs on the kiwi , pullingit down to a one-month low of $0.8151 from NY's close of$0.8185. It last around $0.8168.

* Kiwi, which is down 1.6 pct this month, likely to followAussie lower, with next support seen around Sept 10's low of$0.8130, then the psychological level of $0.8100.

* NZ Prime Minister John Key dismissed Green Party'ssuggestion to print money to lower the kiwi dollar, pointing toinflation risk.

* U.S. dollar pulls back after hitting a two-week high vsthe yen on solid U.S. jobs data, which also briefly lifted theeuro against the greenback.

* Market participants still await Spain's request for aid, amove that would prompt the ECB to buy its bonds and lower thecountry's borrowing costs.

* In other markets, the S&P 500 broke a four-day string ofgains, ending lower on Friday as U.S. earnings season start thisweek with Alcoa. The Thomson Reuters-Jefferies CRB index

was down 0.9 pct on Friday.

* Aussie softer against the kiwi at NZ$1.2419 ,from NZ$1.2444 on Friday. It hit a one year low of NZ$1.2361earlier last week.

* Euro notches further gains to four-month highs against theAntipodeans at A$1.2794 and NZ$1.5925 .

* Aussie and kiwi pressured against the yen, a touch softerat 80.10 and 64.21 .

* Australia has job ads, while no major data due in NZ.Separately, Chinese markets reopen from holidays.

* NZ government bonds open lower in line withU.S. Treasuries, with yields up 1 basis point along the curve.

* Australian government bond futures also fall withthree-year contract down 0.020 points to 97.610, and the10-year contract 0.050 points lower at 97.010.

((Australia/New Zealand bureaux)(+61 2 9373 1800/+64 4 8027980))

Keywords: MARKETS AUSTRALIA NEWZEALAND/FOREX