By Wayne Cole
SYDNEY, April 30 (Reuters) - The Australian and New Zealand dollars slipped on Monday as high yields in the United States and low rates at home combined with concerns about global growth to keep risk sentiment fragile.
The Aussie dollar AUD=D4 was down 0.2 percent at $0.7565, after bouncing modestly from $0.7532 on Friday. It lost 1 percent last week and was threatening major chart support at $0.7501, a trough from last December.
A break above $0.7650 would be needed to turn around the recent bearish trend.
The kiwi dollar NZD=D4 was also struggling at $0.7070, having hit a four-month low of $0.7040 on Friday. Support lies around $0.7000 and $0.6955, with resistance at $0.7100.
Both currencies have lost ground to a firmer U.S. dollar in recent weeks as U.S. economic data tended to top expectations while domestic and European figures have been lagging.
A survey out of New Zealand on Monday showed business confidence declined in April and sentiment in the construction sector slumped as it struggled to keep pace with demand amid soaring costs. out of China were better but not strong enough to break the cautious mood. The official gauge of manufacturing (PMI) dipped a tick to 51.4 in April, but still beat forecasts, while services edged up to 54.8, from 54.6. is much speculation the Reserve Bank of Australia (RBA) could trim its forecast for economic growth this week, even as it nudges up the outlook for inflation.
The central bank holds its monthly policy meeting on Tuesday and is considered certain to hold rates at 1.5 percent, where they have been since August 2016. AU/INT
It will also update its economic forecasts in a quarterly policy statement on Friday and might temper its optimism for this year after a disappointing end to 2017.
"We expect the RBA to lower its growth forecast from 3.25 percent to 3.0 percent," said Westpac senior currency analyst Sean Callow. "This is still above Westpac's forecast of 2.7."
Westpac predicts the RBA will be on hold for all of this year and all of next, while markets 0#YIB: are not fully priced for a move to 1.75 percent until June or July, 2019.
In contrast, the U.S. Federal Reserve is expected to hike rates at least twice more this year alone and the divergence is pushing Treasury yields above those in Australia.
Yields on Australian 10-year paper AU10YT=RR are already 17 basis points under the United States, levels not seen since 1998.
Bond futures firmed further on Monday with the three-year bond contract YTTc1 up 4.5 ticks at 97.780. The 10-year contract YTCc1 rose 4 ticks to 97.2000.
New Zealand government bonds 0#NZTSY= also rallied, with yields down as much as 6 basis points at the long end of the curve.
(Editing by Clarence Fernandez)