Aussie & NZ dollars rally on euro, iron ore up again

WELLINGTON/SYDNEY, Oct 10 (Reuters) - The Australian and NewZealand dollars rallied on the euro on Wednesday as concernsover Spain continued to simmer, while a second session of gainsfor iron ore brightened the outlook for Aussie export earnings.

* Euro pulls back further to one-week lows against theAntipodeans. Down 0.8 pct on the Aussie at A$1.2618and well off last week's peak at A$1.2824. It last at NZ$1.5751

on the kiwi.

* The two currencies had less luck against the U.S. dollarwhich made its own progress on the euro, leaving the Aussie

around $1.0203, from $1.0245 in late trade on Tuesday.

* Support seen around $1.0175, then $1.0150, while sellerslined up around 100-DMA of $1.0251.

* NZ dollar at $0.8170, after sliding to $1.8161from $0.8230 in late Tuesday trade. Kiwi buyers seen around$0.8150, while $0.8190 may cap the top side for now.

* Kiwi down 1.5 pct vs the greenback so far this month,compared with Aussie's 1.7 pct drop. Markets expect more ratecuts in Australia vs steady rate outlook in NZ.

* Aussie recovers on the kiwi , edging higher toNZ$1.2476, from NZ$1.2431 on Tuesday. The pair hit a one yearlow of NZ$1.2361 last week.

* In the broader markets, the U.S. dollar and yen higheragainst the euro on worries about Q3 corporate earnings as debtuncertainty about Greece and Spain debt lingers.

* Wall Street finishes lower on tech companies, while Alcoa

shares up after Q3 results, with muted response incurrency markets. The Thomson Reuters-Jefferies CRB index

was up almost 1 pct, with oil higher, gold down whilecopper flat.

* Spot iron ore prices rose another 6 pct to$117.20 a tonne, bringing its gains this week to 12 pct. Thesteel-making mineral has now recouped around half of the hugefall suffered in July and August, a major relief for miners asit is Australia's biggest export earner.

* That helped offset gloom from the IMF which said theglobal economic slowdown was worsening as it cuts growthforecasts for the second time since April.

* Concern about Greece resurfaces after ECB chief MarioDraghi told a European Parliament committee that Greece has madeprogress on reforming its economy, but has more work to do.

* Australia has a survey of consumer confidence for Octoberwhich could show some improvement following last week's cut ininterest rates. NZ expects the government financial statementfor the fiscal year to June 30.

* NZ government bonds start firmer, with yieldsdown 1 basis point along the curve.

* Australian government bond futures flat with three-yearcontract at 97.650, and the 10-year contract at97.035.

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