SYDNEY/WELLINGTON, Jan 14 (Reuters) - The Australian and New Zealand dollars lost ground to a broadly stronger euro on Monday as the single currency benefited from fading expectations of European rate cuts, but they held firm near four-year highs on the battered yen.

* Euro hit an offshore high of A$1.2675, the best since Jan 2, after ECB Chief Mario Draghi gave no hint that the bank was contemplating a rate cut any time soon.

* Draghi's comment followed the bank's policy meeting on Thursday, which suggested Europe's economy is set for a recovery in 2013.

* Euro around A$1.2663 early, and about NZ$1.5937 on the kiwi, after peaking at NZ$1.5960 overnight.

* That also weighed on the Antipodeans, which have come under pressure against the greenback after hefty gains over the past two weeks. Aussie last at $1.0545 from $1.0574 in late local trade on Friday. Support now seen at $1.0520, an hourly high on Jan 9, while option barriers at $1.0600.

* Likewise, kiwi fell to $0.8363 from $0.8426 on Friday. It last around $0.8380. Traders eye asset allocation flows to support the kiwi, with buyers around 10-DMA of $0.8347 and resistance at $0.8395, hourly highs on Jan 11.

* Both remained firm on the yen as the bank of Japan comes under intense pressure to reflate the Japanese economy. Aussie holds around 94.04 yen early, not far from a four-year peak of 94.51 struck last week.

* Kiwi last at 74.61 against last week's 75.39 yen, its highest since Sept 2008.

* Japan is Australia's second largest export market and fourth for New Zealand, so any pickup in growth there would likely be good for trade.

* Market now awaiting speeches from the Federal Reserve, including Chairman Ben Bernanke. Australia has housing finance, job ads and a private inflation gauge, while NZ has electronic card retail sales.

* NZ government bonds recover, pushing yields down 1.5 bps along the curve.

* Australian government bond futures also ended firmer on Friday. The three-year contract was indicated up 0.02 points at 97.160 and the 10-year contract also 0.02 points higher at 96.570.

(Australia and New Zealand bureaux) Keywords: MARKETS AUSTRALIA NEWZEALAND/FOREX

(mantik.kusjanto@thomsonreuters.com)(+6448027978)(Reuters Messaging: mantik.kusjanto.thomsonreuters.com@reuters.net)

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