Aussie dlr up on better risk appetite, bonds ease

__________AUSTRALIAN CREDIT/FOREX (0220 GMT) SNAPSHOT__________
FOREIGN EXCHANGE (against previous Sydney close) <AUD=>
0.9459/62 (0.9372/74) <AUDNZD=R>1.2286/2307(1.2257/68)
<AUDJPY=R> 98.18/28 (96.83/93) <JPY=> 103.81/82
(103.34/37) <AUDEUR=R> 0.6093/97(0.6084/88) <EUR=> 1.5520/24
(1.5399/5400)
DEBT FUTURES CASH YIELDS 90-DAY
BILLYBAc1 (JUN) 92.18 (-0.02) <AU3MBB=RR> 7.76(7.76) 3-YR
BOND YTTc1 (JUN) 93.73(-0.02) <AU3YT=RR> 6.20(6.23)
10-YR BOND YTCc1 (JUN) 93.780(-0.015) <AU10YT=RR>
6.19(6.21) 3/10 SPREAD -0.025 (-0.040) AUST/US 10-YR SPREAD
+241 (+245) S&P/ASX 200 5834.4 (5771.8) US10-YR
<US10YT=RR> 3.77 (3.76) __________________________ May
13_____________________________

* The Australian dollar rebounded to its highest in almost
a week on Tuesday, gaining nearly a cent against the U.S.
currency on improving risk appetite for high-yielding
currencies following gains for Wall Street shares.

* Shortly after midday, the Aussie <AUD=> was at
$0.9459/62 against the U.S. dollar, up from $0.9372 late on
Monday.

* The Aussie recovered most of its recent losses against
the yen <AUDJPY=R> to 98.17/27 yen, up from 96.83/93 yen late
on Monday, but off an offshore peak of 98.40 yen.

* The Aussie extended gains to its highest since August
2006 against the kiwi at NZ$1.2313 <AUDNZD=R> amid expectations
that interest rates in New Zealand were likely to ease later
this year due to a fast-slowing economy.

* The Australian federal budget will be unveiled in
Canberra by Treasurer Wayne Swan later in the session. Analysts
are expecting the government to trim its medium-term growth
forecasts and revise up its inflation expectations.

* Data on Monday underscored a growing view that domestic
demand in the economy was slowing and the central bank was
likely to keep rates unchanged at a 12-year high of 7.25
percent.

* The CRB commodities index .CRB eased from record highs,
dropping 0.62 percent to 424.81.

* U.S. crude CLc1 settled down at $123.86 a barrel, off
an earlier record high of $126.40 a barrel.

* Gold fell on Monday. Spot gold <XAU=> fell to $881.85 an
ounce.

* Australian bonds were lower, taking a breather after two
straight session of gains, as safe haven inflows eased. U.S.
Treasuries slipped on Monday as a stock rally led by the
technology sector dimmed the allure of less risky government
debt.

* Three-year Australian bond futures YTTc1 fell 0.02
points down at 93.730, while the 10-year bond contract YTCc1
lost 0.015 points to 93.780.