* Aussie pulls back to track gold, stocks lower
* Markers awaiting speech by RBA chief at 0855 GMT
* Bond futures stay in the red
SYDNEY, Nov 5 (Reuters) - The Australian dollar gave up
some gains on Thursday hurt by lower gold and stock prices,
although the prospect of a widening interest rate advantage
helped keep it aloft.
The Aussie retreated to $0.9051, off a high of $0.9145
struck offshore. The decline mirrored a 0.9 percent fall in
gold prices and modest losses in stock markets across
Asia.
Yet even with the pull-back, the Aussie is still up from
Wednesday's $0.9022. Most of its strength came in a rally in
New York late Wednesday when the Federal Reserve repeated its
commitment to keep U.S. rates near zero for an "extended
period".
Traders and analysts said the promise of widening yield
differentials in the Aussie's favour was fuelling a feel-good
factor about the currency.
"The feeling is that the Aussie is going to be heading
north, not south, in the next six months," said Tim Waterer, a
trader at CMC Markets.
The local dollar nudged higher on the yen to 81.84 yen
, from 81.49 yen.
At 3.50 percent, Australian rates are the highest among
major economies. [ID:nGLOBAL]
The Reserve Bank of Australia (RBA) said it was "prudent"
to continue raising rates "gradually", after hiking by a
quarter of a percentage point earlier this week.
The prospect of local rates rising further has pushed the
two-year Australian-U.S. yield spread to a 15-month-high of 396
basis points on Oct. 27. The spread has since narrowed and
stood at 317 basis points on Thursday.
Investors are now closely monitoring economic reports and
speeches by RBA officials to spot clues about whether the RBA
will raise rates again in December, having already done so in
the previous two months.
First up is a speech by RBA Governor Glenn Stevens later
Thursday, when he will also be taking questions.
The central bank also releases its quarterly Statement on
Monetary Policy on Friday which is likely to see upward
revisions to forecasts for growth and inflation.
December interbank futures <0#YIB:> and implied money
market rates show investors are mulling a 58-60
percent chance of a 25-basis-point rate rise next month.
Aussie bond futures stayed in the red after tracking losses
in Treasuries earlier, ahead of next week's $81 billion
Treasury auction.
Three-year bond futures were down 0.06 points at 94.93. The
10-year contract shed 0.035 points at 94.40.
----------------(Snapshot at 4:00 p.m./0500
GMT)---------------- FUTURES
CASH YIELD 90-DAY BILL 90-DAY BILL (DEC) 95.88 (-0.03)
AUD3MOIS= 3.62 (3.60) 3-YR BOND (DEC) 94.93 (-0.06)
AU3YT=RR 4.96 (4.91) 10-YR BOND (DEC) 94.40 (-0.035)
AU10YT=RR 5.65 (5.62) AUD/USD 0.9051 (0.9022)
US10YT=RR 3.51 (3.47)
---------------------------------------------------------------
AUD VS 2-YR 10-YR *AUD 3-YR/10-YR SPREAD
USD +370 (+364) +214 (+215) *FUTURES +0.53 (+0.546)
CAD +319 (+316) +217 (+219) *AUD 2-YR/10-YR SPREAD
NZD +32 (+28) -10 (-10) *CASH +105 (+106)
---------------------------------------------------------------
(Reporting by Koh Gui Qing)