Aussie & NZ dollars find support, China data looms


* Aussie up 0.9 pct for the week, bears run out of puff

* Kiwi flat on the week, stuck around $0.8200

* China economic data and NZ inflation on the horizon

By Gyles Beckford and Wayne Cole

WELLINGTON/SYDNEY, Oct 12 (Reuters) - The Australian and NewZealand dollars inched higher on Friday after Singapore'scentral bank surprised markets by sounding more upbeat on itseconomy than many had feared, enough to skip a chance to easepolicy.

Singapore also managed to dodge a technical recession withupward revisions to growth, which combined to lift the Singaporedollar while knocking the U.S. dollar down across the board.

That helped the Australian dollar Aussie nudge upto $1.0271, from an early low of $1.0247. It hit a 10-day highof $1.0294 on Thursday, a solid recovery from the $1.0149 troughtouched early in the week. Chart resistance was put at $1.0325,with support at $1.0240.

The currency has also been supported this week by an 11percent increase in spot prices for iron ore ,Australia's top export commodity.

The New Zealand dollar got a lift as far as $0.8208before settling at $0.8191, leaving it a shade up for the week.Support was seen well established between $0.8130 and $0.8150,with $0.8220 guarding the topside.

Dealers were already turning their focus to a raft ofChinese economic data due in coming days, starting with tradefigures on Saturday and culminating with gross domestic productnext Thursday.

Any downside surprise in the numbers would likely hurt theAussie and Kiwi given how important the Asian giant is as anexport market.

Analysts at Commonwealth Bank expect GDP growth to slow atouch to 7.4 percent in the year to September, from 7.6 percentthe quarter before.

"A outcome in line with our forecasts would imply that theChinese economy is past the trough," said Michael Blythe, chiefeconomist at CBA. "But, we have postponed our expectations for amarked acceleration in growth momentum to the first half of nextyear."

The sluggishness of China is one reason Blythe expects theReserve Bank of Australia (RBA) will cut rates again inNovember, taking them back to the global-financial-crisis lowsof 3 percent.

Much of the market agrees with him as interbank futures

imply a two-in-three probability of a quarter point cutnext month and are fully priced for 3 percent by Xmas.

For New Zealand next week, all eyes will be on inflationfigures for the third quarter out on Tuesday.

Analysts in a Reuters poll expect a quarterly rise of 0.6percent, giving a low annual rate of 1.1 percent.

"The favourable inflation outlook should allow the RBNZ toextend its low interest rate policy until Q3 next year," Citieconomists said in a note.

Market pricing implies an 11 percent chance of a cut laterthis month, with 21 basis points of cuts over the next 12months. Analysts are picking the next move to be a rise, but notuntil the second half of 2013.

Other New Zealand data next week includes migration, jobadvertisements, and dairy giant Fonterra's latest auction.

Having lagged the market on Thursday, the kiwi made up somelost ground on the cross rates, managing gains of around 0.2percent across the board, with the euro easing to NZ$1.5765, the Aussie at NZ$1.2524 , and up to 64.19yen .

New Zealand government bonds closed with a bidtone, with yields closing 2.5 basis points lower across thecurve.

Australian government bond futures eased a touch, with thethree-year contract down 0.020 points at 97.630. The10-year contract lost 0.010 points to 97.055.

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