SYDNEY/WELLINGTON, March 23 (Reuters) - The Australian and New Zealand currencies held their ground on Wednesday with markets in an uncertain mood following attacks in Brussels that killed at least 30 people.
With Asian equity markets suffering only modest declines, the Aussie - usually sold off in times of heightened risk aversion - was a touch higher at $0.7628 AUD=D4 .
It was little changed against the safe-haven Japanese currency at 85.59 yen AUDJPY=R , having recovered from a slide to 84.08 overnight.
"While the news will likely have limited short-term impact on the global FX markets, traders were busy digesting this tragic event overnight," said Stephen Innes, senior trader at FX and CFD broker OANDA Australia and Asia Pacific.
Islamic State claimed responsibility for suicide bomb attacks on Brussels airport and a rush-hour metro train in the Belgian capital, with police hunting a suspect who fled the air terminal. the uncertainty, traders said there is a lack of market conviction. The New Zealand dollar NZD=D4 shuffled in a narrow range of $0.6738-$0.6769, near where it closed in New York. The kiwi shed 0.3 percent on the yen to 75.63 NZDJPY=R .
Government bonds followed a negative lead from U.S. Treasuries, where prices fell after more Federal Reserve officials advocated hikes in U.S. interest rates this year.
Philadelphia Fed President Patrick Harker said the Fed should consider another hike as early as next month if the U.S. economy continues to improve as it has of late. Zealand government bonds 0#NZTSY= eased, sending yields up to 6.5 basis points higher.
Australian government bond futures also slipped, with both the three-year and 10-year bond contracts YTTc1 YTCc1 down 6 ticks at 97.970 and 97.3400 respectively.