* Aussie off 4-mth lows vs euro & 3-mnth trough vs USD
* RBA sees weakening in Australian labour market
* Job report due out on Thursday looms large
By Gyles Beckford and Cecile Lefort
WELLINGTON/SYDNEY, Oct 9 (Reuters) - The Australian and NewZealand dollars recovered a bit of ground on Tuesday, helped byprofit-taking and a bounce in Chinese stocks, though the moodremained fragile on global growth worries and subdued economicdata in Australia.
The Aussie gained half a cent to $1.0245, from$1.0196 in early trade, boosted by short-covering following afall to $1.0149 on Monday, its weakest since mid-July.
Traders cited active participation from model funds who arebig buyers on dips.
The New Zealand dollar was testing resistancelevels around $0.8230 on fund buying out of Asia and trimming ofshort positions. It had touched a one-month low of $0.8150.
Near-term support for the New Zealand dollar was seen at the20-day moving average around $0.8251 ahead of a more solidbarrier at $0.8266. Support was found at Monday's low of $0.8150and below that Sept 10's high of $0.8134.
A recovery in Asian bourses, led by Chinese stocks whichbounced 2 percent, and a 6 percent increase in iron ore priceshelped lift sentiment.
The Antipodeans also bounced off multi-month lows againstthe euro, yen, and sterling.
The Antipodeans' gains were capped by concerns over globalgrowth, particularly in China, after the International MonetaryFund said it expects China's economic growth to weaken to 7.8percent this year.
The Antipodean currencies are highly sensitive to news aboutChina, a key export market.
The Aussie has fallen around 1.4 percent so far this monthversus its U.S. counterpart and 2.5 percent against the euro,due in part to a rate cut by the Reserve Bank of Australia (RBA)last week and the prospect of more easing.
A top Australian central banker said on Tuesday weakerglobal outlook and a softening in the domestic labour marketwere the "primary factors" behind last week's easing.
David Scutt, a trader at Arab Bank Australia, said a majortest for the Aussie will come on Thursday with the Septemberjobless report.
"Given the RBA comments earlier today if we get a weakunemployment number, it will seal the case for at least a 25basis point-easing and knock the Aussie a little bit," he said.
A private survey showing Australian business conditionsweakened in September as retailers and wholesalers suffered fromslack demand, fed the case for further cuts.
Interbank futures pricing implies a 64 percentchance of another quarter of a point cut next month with OISmarkets showing nearly 100 basis points worth of easingover the next 12 months.
Charts suggested further downside for the Aussie with dailymoving average studies pointing lower. A dealer said only abreak above $1.0280 might suggest a stronger recovery under way.
For now, support was found at $1.0150, an Oct 8 low, withtraders citing real money investors ready to sell ralliestowards $1.0250/80.
A sprinkling of New Zealand data offered a mixed outlook forthe economy, with a closely followed think tank's quarterlysurvey of business confidence improving but still pointing to aslowdown in growth.
A separate partial measure of New Zealand retail salesshowed a dip after the previous month's stellar rise, while agovernment valuation agency's housing report showed pricesnudging to a record high amid tight supply.
"Set against this backdrop of some emerging downside risksto an already moderate paced recovery scenario, containedinflationary pressures and an elevated NZ dollar, there appearslittle need over the year ahead for the RBNZ to alter thecurrent stimulatory level of interest rate settings," said FirstNZ Capital director of economics and strategy, Chris Green.
New Zealand government bonds closed flat afteropening firmness.
Australian government bond futures fell a touch, retreatingfrom two-month peaks touched last week. The three-year contract
edged down 0.010 points to 97.630, as was the 10-yearcontract at 97.015.
((Australia/New Zealand bureaux)(+61 2 9373 1800/+64 4 8027980))
Keywords: MARKETS AUSTRALIA NEWZEALAND/FOREX