By Cecile Lefort
SYDNEY, Oct 26 (Reuters) - The Australian and New Zealand dollars nursed modest losses on Monday as China's monetary easing revived worries about global growth, yet they hovered near multi-month peaks against a soggy euro.
The euro dropped more than 3 percent against both Antipodean currencies after the European Central Bank last week signalled it is ready to increase the scale of its stimulus measures.
The common currency dropped to A$1.5217, close to a two-month low of A$1.5179 touched on Friday. Key support was seen around A$1.5107, the 50 percent retracement of the April-August climb.
It stood at NZ$1.6305 against the kiwi dollar, having skidded as far as NZ$1.6152 on Friday.
Against its U.S. counterpart, the Aussie was pinned at $0.7244, unable to break key resistance around 73 cents. It squeezed to a peak of $0.7297 late on Friday after China cut interest rates for the sixth time since November 2014.
But the rally ran out of steam when global growth concerns resurfaced, leaving the Aussie 0.5 percent lower for last week.
At home, the focus is on inflation data on Wednesday, with economists forecasting core inflation to remain well restrained in an invitation to further cuts in interest rates by the Reserve Bank of Australia (RBA).
Markets 0#YIB: are pricing in around a one-in-four chance of a cut to 1.75 percent at the RBA's Nov. 3 meeting, rising to a 56 percent probability for December.
Some dealers warned the odds could narrow as central banks keep or accelerate super loose monetary policy to support sputtering economies. The Swiss National Bank reiterated that negative interest rates will remain in place in Switzerland for as long as necessary.
With rates near zero, or even negative, in many developed countries, Australia's 10-year bond yield of 2.6 percent AU10YT=RR makes them increasingly attractive. Likewise, New Zealand's ten-year bonds NZ10YT=RR pay 3.3 percent.
Across the Tasman Sea, the focus is on the Reserve Bank of New Zealand's policy review on Oct. 29. While expectations are for the central bank to pause after three consecutive easings, it could also be pressured to cut again to help offset high bond yields.
The New Zealand dollar NZD=D4 stood at $0.6758, having skidded more than a full cent from Friday's peak. It ended last week 0.8 percent lower after attempts to break above 69 cents failed. Support was found at $0.6750, then $0.6644.
Trading was thinned due to a holiday in New Zealand.
Australian government bond futures slipped, with the three-year bond contract off 4 ticks at 98.170. The 10-year contract dropped 6.5 ticks to 97.2950, while the 20-year contract fell 4.5 ticks to 96.7750. (Editing by Richard Borsuk)