By Cecile Lefort and Charlotte Greenfield
SYDNEY/WELLINGTON, May 2 (Reuters) - The Australian and New Zealand dollars crept up against their U.S. counterpart on Monday and regained some ground on the yen in quiet trading with much of Asia closed for the May Labour Day holiday.
Japanese financial markets will be shut from Tuesday to Thursday for the Golden Week holiday.
The Australian dollar AUD=D4 edged up to $0.7615, from $0.7603 late on Friday, with markets hesitant to take large positions ahead of an interest rate decision by the Reserve Bank of Australia (RBA) on Tuesday.
Support is found at $0.7570 with resistance at $0.7630.
The Aussie slipped 1.4 percent last week after a surprisingly low inflation read in the first quarter prompted investors to price in a greater chance of a cut in interest rates.
Interbank futures 0#YIB: imply around a 50-50 chance of a cut, and a growing number of economists predict such a move. Eighteen out of 50 analysts in a Reuters forecast the RBA to ease to a record low of 1.75 percent. AU/INT
"AUD/USD can fall briefly by roughly 2 percent if the RBA cuts rate on Tuesday, but quickly recover," said Elias Haddad, a senior strategist at Commonwealth Bank.
"No change by the RBA could push AUD/USD 2 percent higher."
Also in focus on Tuesday is the government's annual budget, though it typically has limited impact on financial markets as Australia is seen a stable nation with relatively low debt.
The ruling Liberal Party-led coalition government is expected to announce a deficit of around A$37 billion this financial year, and aims to run a small fiscal surplus from 2022. Aussie touched a two-month trough of 80.60 yen against a broadly stronger yen AUDJPY=R before modestly bouncing back to 81.05. It skidded 7 percent last month.
Likewise, the New Zealand dollar rose 0.7 percent on the day to 74.56 yen NZDJPY=R , from a one-month trough.
The New Zealand dollar NZD=D4 traded at around $0.6990, rising from around $0.6960 on Friday and near the levels it soared to last week after the country's central bank skipped a chance to cut interest rates.
Investors will be looking ahead to the global dairy auction held early Wednesday morning to show whether dairy prices were continuing to firm, as well as New Zealand labour data due the same day.
The RBA's decision would also be closely watched.
"If the bank were to cut, it would likely get the market thinking more seriously about a June cut from the RBNZ," said BNZ senior market strategist Kymberly Martin in a research note.
New Zealand government bonds 0#NZTSY= eased, sending yields 1.5 basis points higher at the long end of the curve.
Australian government bond futures were quiet, with the three-year bond contract YTTc1 off one tick at 98.150. The 10-year contract YTCc1 was steady at 97.4850, while the 20-year contract YXXc1 eased 1.5 ticks to 96.8750.