By Cecile Lefort and Ian Chua
SYDNEY/WELLINGTON, Oct 27 (Reuters) - The Australian and New Zealand dollars drifted sideways on Tuesday with investors reluctant to take big bets before central bank meetings in the United States and Japan.
The Australian dollar loitered at $0.7248, having traded in a narrow range of $0.7206-$0.7269 since Monday. Key resistance was found around 73 cents, a level it tested three times in the past week.
The New Zealand dollar was a tad softer at $0.6778, having drifted in a 67-69 cent range since its 10-percent rally came to an abrupt end earlier in the month.
The Antipodean currencies could be jostled out of their pensive mood this week by key central bank events.
While the U.S. Federal Reserve is expected on Wednesday to hold off its first rate hike in nearly a decade, the tone of the statement could ruffle markets.
"The market prices just a 6 percent chance of a hike at this meeting. Investors will be more interested whether the statement formalises the sounds of caution being made by Fed speakers in recent weeks," said Raiko Shareef, currency strategist at BNZ.
Closer to home, the Reserve Bank of New Zealand (RBNZ) will review its policy on Thursday amid speculation it will pause after three consecutive rate cuts. Yet, the RBNZ is expected to take a dovish tone and could even talk down the currency afresh.
"NZD/USD will likely trade in step with broader risk appetite ahead of Thursday, with 0.6850 the big level on the topside, and 0.6700 supporting below," said Shareef.
Against the euro, the Antipodean currencies held hefty gains underpinned by the prospect of more easing from the European Central Bank in December.
The common currency stood at A$1.5241, close to a two-month low of A$1.5179 touched on Friday. It hovered around NZ$1.6285 against the kiwi dollar, having touched a four-month trough of NZ$1.6152 last week.
So far this month, the euro has dropped more than 4 percent against the Aussie and kiwi.
New Zealand government bonds were little changed.
Australian government bond futures had a firm tone, with the three-year bond contract up a tick at 98.180. The 10-year contract added 3 ticks to 97.3400, while the 20-year contract rose 2.5 ticks to 96.7900.