--------------(Snapshot at 8:00 a.m./2100 GMT)-----------------

FOREX (vs Late Sydney) DEBT FUTURES (Night Session) 0.8714 (0.8670) 90-DAY (MAR) 95.83 (95.86) 0.6356 (0.6322) 3-YR (MAR) 95.29 (95.29) 77.88 (77.71) 10-YR (MAR) 94.57 (94.565) 1.2616 (1.2571) US10-YR 3.57 (3.62)

---------------------------------------------------------------

AU$S/Term range *Support *Resistance *RSI-14 *MA-10 *MA-20

*0.8500/8915 *0.8680 *0.8780 *31.881 *0.8867 *0.9029

----------------------------(Feb 8)---------------------------

* Australian dollar offshore trading range

$0.8580-0.8708.

* Aussie hanging onto 87 U.S. cents early Monday after

bouncing from four-month lows at the end of last week when U.S.

stocks staged a late rebound.

* Technically the currency was oversold after shedding seven

cents in three weeks and a corrective bounce is due, perhaps to

targets around $0.8780 and $0.8886. But the overall trend remains

bearish for a test of $0.8542.

* Aussie also bounces somewhat to 77.90 yen, having

slumped to seven-month lows around 76.20 at one point on Friday

as the yen gained from safe-haven flows.

* Global focus remains on EU sovereign debt, with the G7

meeting ending with much vocal support for Greece but no concrete

action. Markets will be watching spreads on

Greece, Portugal and Spanish debt this week.

* Little reaction as yet to news the Australian government

would drop its guarantee for commercial bank wholesale funding.

The banks have been raising money without the guarantee recently,

so the impact should not be dramatic

* Three-year bond futures indicated 0.030 point up at

95.290 and ten-year futures indicated up 0.025 point at

94.570.

* Longer-term Aussie sentiment could be helped by news that

an Australian miner had signed a deal to sell A$60 billion of

coal to China over a 20-year period.

* Chinese and Indian demand for Australian resources should

boost the country's terms of trade this year and is one reason

many local analysts remain bullish on the Aussie for the

longer-term.

* The domestic focus this week will be on jobs data on

Thursday where a solid rise of 15,000 is expected in employment

with the jobless rate edging up slightly to 5.6 percent.

* A strong report would revive the prospect of a rate rise in

March, after the Reserve Bank of Australia (RBA) surprised by

skipping a hike last week.

* Top miners Rio Tinto and BHP Billiton

also release financial results this week.

(Reporting by Wayne Cole; Editing by Balazs Koranyi)

(If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) Keywords: MARKETS AUSTRALIA BONDS/FOREX

(wayne.cole@reuters.com ; +61 2 9373 1813; Reuters Messaging: wayne.cole.reuters.com@reuters.net)

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