SYDNEY/WELLINGTON, Jan 29 (Reuters) - The Aussie and kiwi dollars bounced off lows against their U.S. counterpart and euro on Tuesday, as a jump in business confidence in Australia and a surprising trade surplus in New Zealand lifted appetite for growth-linked currencies.
* Aussie at $1.0439, from $1.0412 early, having touched $1.0384 on Monday, its weakest since the start of the month. Support seen around $1.0375-$1.0385 ahead of a major retracement level at $1.0350 with some analysts seeing a bigger correction to $1.0330.
* Kiwi rises to $0.8343, from $0.8332 early, after NZ unexpectedly posted a trade surplus in December as imports fell, narrowing the annual trade gap. It dipped to a one-month low of $0.8280 on Monday.
* Gains capped by concerns about NZ dairy after traces of a potentially toxic chemical were found in milk samples. Dairy giant Fonterra on Monday said the country's milk was safe.
* Technically, kiwi can hold above technical support at $0.8299, its 55-DMA, with $0.8364 on the topside, a 21-DMA and the high on Jan 28. Westpac says kiwi correction since Jan 11 incomplete and may see a test at $0.8215.
* Strength in the Antipodeans help them regain a little ground against the euro with the Aussie up 0.2 pct on the day to A$1.2892 and kiwi at NZ$1.6104, from NZ$1.6133 early.
* Both currencies plumbed their weakest versus the euro since mid-2012 as fund managers abandoned euro bearish bets and built long positions, even though much of the region remains mired in recession.
* Australian business confidence rebounded sharply in December thanks to lower interest rates and better news offshore, a private survey showed on Tuesday, with investors paring chances of further easing.
* Markets pricing now implies a one-in-four chance of a rate cut to a record low 2.75 pct when the central bank holds its next policy meeting on Feb. 5. They had a near one-in-three chance of a cut on Monday.
* The Reserve Bank of New Zealand is also expected to stay pat on Thursday, with markets and analysts expecting no change in record low key rate at 2.5 pct. A Reuters poll sees next rate increase later this year or early next year.
* NZ government bonds lower with offered tone, keeping yields 2 basis points higher across the board.
* Australian government bonds slip, with the three-year contract 0.06 points lower at 97.150, while the 10-year contract falls 0.07 points to 96.540.
(Australia and New Zealand bureaux) Keywords: MARKETS AUSTRALIA NEWZEALAND/FOREX
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