SYDNEY/WELLINGTON, April 12 (Reuters) - The Australian and New Zealand dollars rose on Tuesday after an upbeat local business survey combined with firm iron ore prices.
A weakening yen underpinned appetite for risk assets, which also helped the Australian and New Zealand currencies.
The Australian dollar AUD=D4 popped to $0.7620, from $0.7596 early, nearing a nine-month peak of $0.7723 touched late March.
It received a boost after a survey showed Australian firms across most industries saw improving conditions in March, lifting an index of activity to its highest in eight years. survey reinforced expectations of a steady interest rate outlook, at least in the short-term. Interbank futures 0#YIB: imply a less than 50-50 chance of an easing by June.
Last week, the Reserve Bank of Australia (RBA) kept its cash rate at a record low 2.0 percent for a 10th straight policy meeting, citing evidence of continued growth at home.
The bullish mood was enhanced by a rally in the price of iron ore, Australia's top export earner, which bounced nearly 5 percent on Monday.
The yen's loss of momentum after its sharp gains in recent gains also helped the Aussie.
The Aussie gained 0.5 percent in the session to 82.37 yen AUDJPY=R , moving away from a one-month low of 80.64.
Likewise, the New Zealand dollar climbed to 74.30 yen NZDJPY=R , having touched 73.16 last week, a level unseen since August last year.
The New Zealand dollar NZD=D4 was steady at $0.6869, but up from a low of $0.6792 on Monday.
ANZ Bank said the failure to push any lower "suggests it's heading for a test higher as markets have lost faith in the US$ strength story."
It noted the New Zealand economy remains solid and there were higher yields on offer, providing additional NZD support. It expected the kiwi to trade in a range of $0.6800 to $0.6950.
New Zealand government bonds 0#NZTSY= eased, sending yields around 3 basis points higher across the curve.
BNZ senior market strategist Kymberly Martin said the market will be watching Wednesday's release of food prices as the final piece of data for the first quarter consumer price index.
BNZ is expecting annual inflation to be 0.3 percent, below the RBNZ's forecast of 0.4 percent. "This could be sufficient for the market to increase its pricing of an April cut to more than 50 percent," she said.
Australian government bond futures were off one-month highs, with the three-year bond contract YTTc1 5 ticks lower at 98.160. The 10-year contract YTCc1 fell 6 ticks to 97.5350, while the 20-year contract YXXc1 shed 3.5 ticks to 96.9700. (Editing by Simon Cameron-Moore)