A$, NZ$ surf wave of global optimism

WELLINGTON/SYDNEY: The Australian and New Zealand dollars were firmly on the front foot on Wednesday as world stock markets rallied on a Chinese government pledge to maintain growth and positive euro zone and US data, bolstering risk sentiment and commodity currencies.

Australia has GDP data at 0030 GMT with expectations of a 0.6 percent rise for the fourth quarter and annual growth easing a tad to 3 percent. On Tuesday data showed net exports adding a solid 0.6 percentage points to Q4 economic growth.

The Aussie up around $1.0245, just above Tuesday's late local level, and a marked contrast to Monday when it plumbed an eight-month low of $1.0116.

The currency gained a quarter of a US cent after the Reserve Bank of Australia held its cash rate at a record-matching low of 3.0 percent, as expected, saying the impact of past cuts had yet to be fully felt.

The RBA, which has slashed rates by 175 basis points since 2011, left the door open for further cuts if needed. Investors trim expectations on how far rates might yet fall, with market pricing implying 36 basis points of cuts over the next 12 months , down from 45 basis points early on Tuesday.

Aussie seen supported at $1.0200 with resistance seen around $1.0290, the late February highs.

The New Zealand dollar holds its Aussie-induced gains to reach $0.8303, after hitting a 2013-low of $0.8193 on Monday.

NZ dollar helped by latest auction results from dairy giant Fonterra, showing a 10.4 percent average price lift, the biggest single auction gain in nearly two years, albeit on a sizeable 14 percent fall in volumes.

The euro rises against the dollar for a second day as risk sentiment improved after a major US stock index surged to all-time highs.

Euro lifted by data showing a lift in euro zone composite PMI and stronger than expected retail sales.

Investors look to this week's European Central Bank meeting and the chances it might cut rates to bolster growth. Italy's political deadlock in the background for now.

Further lifting the mood was a report showing that the pace of growth in the vast US services sector accelerated to its fastest rate in a year, helped by a pick-up in new orders and exports.

The Dow Jones industrial average hits a record high as major world stock markets rally, along with crude oil and copper, aided by diminished fears of a tightening in China.

New Zealand government bonds ease, sending yields 4 basis points higher across the curve.

Australian government bond futures fall further, with the three-year contract down 0.04 points to 97.190, while the 10-year contract eases 0.045 points to 96.655.