By Cecile Lefort and Charlotte Greenfield
SYDNEY/WELLINGTON, Nov 16 (Reuters) - The Australian and New Zealand dollars had a subdued tone on Monday as investors showed caution following the Paris attacks that left more than 130 people dead.
The Australian dollar AUD=D4 eased to $0.7110, from a peak of $0.7160 on Friday. It has been weighed down by a slide in commodity prices, speculation of a Federal Reserve interest rate hike next month and weakness in stock markets. Support was found at the one-month low $0.7016 touched last week.
Underpinning the Aussie was speculation the Reserve Bank of Australia would keep rates at 2 percent for the next couple of months at least.
Interbank futures 0#YIB: have nearly priced out the chance of a cut in December and give a near 50-50 chance of a move by March.
The premium between 10-year AU10YT=RR and 3-year AU3YT=RR government bonds dropped to 73 basis points, the smallest since April. A break under 72 basis points would target the March low of 53 basis points.
The New Zealand dollar NZD=D4 also struggled for traction at $0.6531, from $0.6545 late on Friday.
It briefly climbed to a peak of $0.6580 after Fonterra said it had increased its earnings forecast, while a rise of 1.6 percent in national retail sales also helped.
The kiwi has been stuck during the past six sessions between $0.6499 to $0.6589 as investors await Wednesday's global dairy auction where another dip in prices is a risk. Dairy is New Zealand's top export earner.
New Zealand government bonds gained, sending yields around 5 basis points lower.
Australian government bond futures pulled further away from recent lows, with the three-year bond contract up 6 ticks at 97.910. The 10-year contract jumped 7 ticks at 97.0800, while the 20-year contract powered up 6 ticks to 96.5400. (Editing by Richard Borsuk)