Aussie dollar pressured, finds support at key lows

__________________________ Nov 20______________________________

DATA: RBA bought a net A$3.15 bln in October as it intervened to buy the currency as it tumbled to 60 U.S. cents in wild markets. This was the largest amount ever bought in a single month and the first net purchase since 2001.

* The Australian dollar remained under pressure on Thursday as weakness in stocks kept investors risk-averse, though it found some support from data showing the central bank bought a record amount of the currency last month.

* The Reserve Bank of Australia (RBA) intervened in late October to buy the currency as it collapsed to 60 cents amid global market turmoil. It has since intervened again around $0.6350. [nSYU005568]

* Analysts said the extent of the intervention showed its commitment to keeping any fall orderly and might make bears wary of shorting the currency too far, too fast.

* The Aussie was hovering around $0.6394, having found support at $0.6360 <AUD=>. It had been as high as $0.6597 offshore before U.S. equities sank. The S&P <.SPX> ended down 6 percent on fears of a deep recession [.N]

* Aussie also down at 61.25 yen <AUDJPY=R>, and away from a 63.86 peak in New York. Renewed flight to the perceived safety of the Japanese yen has lifted it across the board.

* Destruction of equity wealth and more dire U.S. data [nN19322315] reinforced expectations of more aggressive rate cuts from the RBA, boosting bill futures <0#YBA:>.

* RBA Governor Glenn Stevens late Wednesday said Australia had ample scope to move to an expansionary policy [nSYD166219], both through interest rates and fiscal spending.

* The market is already pricing in a rate cut of at least 75 basis points in the 5.25 percent cash rate at its December meeting, and further drastic easing to 3.5 percent next year.

* Three-year bond futures <YTTc1> climbed 0.055 points to 96.310, having earlier touched a record high of 96.350, while the 10-year contract <YTCc1> added 0.06 to 95.215.

* Treasuries were even stronger as U.S. consumer prices fell a steep 1 percent in October [nTOPMACRO] and the Fed signalled a willingness to ease again [nFEDAHEAD].

* Two-year Treasury yields fell to their lowest since 1976 while the spread between Australian and U.S. 10-year yields widened out to 146 basis points.