SYDNEY/WELLINGTON: The Australian and New Zealand dollars held gains on the US dollar on Thursday after US Federal Reserve minutes indicated a willingness to implement more monetary stimulus.
* But Aussie, kiwi subdued versus the euro, as a climb in the single currency to a seven-week high versus the broadly weak dollar prompts investors to cut bets for euro weakness versus the Antipodeans.
* Aussie at $1.0497, from around $1.0440 in late local trade on Wednesday, after minutes show the Fed may announce more quantitative easing "fairly soon" in the absence of a considerable improvement in the economy
* Kiwi pushes up to a two-week high of $0.8146 from $0.8080 late in the local session. Traders expect the Antipodeans will extend gains if Australasian investors also dump the dollar.
* Aussie not helped by commnets from Australia's resources minister that the Mining boom was over. That followed a cautious outlook from miner BHP Billiton on Wednesday.
* The US dollar fell as some investors are taken by surprise at the Fed's increasingly dovish tone. It hits a seven-week trough versus the euro, as more stimulus might involve flooding the market with additional US dollars.
* Euro hits a five-week high around A$1.1960, before edging back to A$1.1919. Touches four-week high around NZ$1.5440. Aussie, kiwi also dip versus the yen, which powers higher versus the US dollar.
* Markets await HSBC data on Chinese manufacturing activity due later in the day, which may pose downside risks for the Antipodeans. A further contraction in PMI could add to the view that Chinese economic growth is slowing, which may curb demand for Australian, New Zealand commodity exports.
* Aussie offers around $1.0530/40 may cap further gains, traders say, while support at $1.0411, builds after the currency held above that level on Wednesday.
* Market participants also anticipate kiwi offers around $0.8145 could provide an obstacle to any significant upside, while support holds at $0.8080, roughly around lows hit consecutively in late July and early August.
* Australian, New Zealand government bonds track US Treasuries higher. The three-year Australian contract indicated 0.080 points higher at 97.320, while the 10-year contract climbs 0.085 points to 96.790.
* New Zealand government bonds also edge up, prodding yields 2 basis points lower across the curve.
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