By Cecile Lefort and Charlotte Greenfield
SYDNEY/WELLINGTON, Dec 7 (Reuters) - The Australian and New Zealand dollars kept just below recent peaks on Monday with the market reluctant to take large bets ahead of data and a central bank rate review later in the week.
The Australian dollar was a touch softer at $0.7223, having touched $0.7386 on Friday, a level not seen since August.
It has rebounded more than 4 percent so far this quarter, in part due to carry trades where global investors can borrow at low rates in euros and yen to buy higher-yielding assets such as the Aussie or kiwi dollars.
The premium offered by Australian two-year government bonds AU2YT=RR over euro debt stood at a mouth-watering 240 basis points and 212 basis points against yen bonds.
The Aussie held near 3-1/2-month highs against the yen AUDJPY=R , while the euro hovered at A$1.4814 EURAUD=R , having tumbled 17 cents since August.
This week, the focus will be on Australia's job report, a bevy of Chinese data and the Reserve Bank of New Zealand's (RBNZ) rate review. ECONAU ECONCN ECONNZ
The New Zealand dollar NZD=D4 edged down to $0.6719, from a one-month peak of $0.6787 set on Friday. Resistance was found around the $0.6800 level.
Investors are waiting to see whether the RBNZ will cut interest rates on Thursday. The majority of economists polled by Reuters expect rates will be trimmed a quarter of a percentage point to 2.50 percent, but the market was less sure, pricing in about a 50 percent probability.
"We expect Governor Wheeler to lower the cash rate by a further 25 basis points, though acknowledge the decision is finely balanced," said Stephen Walters, chief economist at JPMorgan (N:JPM).
He cited ongoing weakness in dairy prices and persistent strength in the exchange rate as the main arguments for further policy support.
New Zealand government bonds 0#NZTSY= were mostly flat across the curve.
Australian government bond futures hovered near multi-month lows. The three-year bond contract YTTc1 was steady at 97.820, having touched its lowest since May at 97.770.
The 10-year contract YTCc1 added half a tick at 97.0250, while the 20-year contract YXXc1 was also up half a tick at 96.5150. (Editing by Sam Holmes)