Aussie recovers on brighter outlook; bonds recover

* Aussie recoups some losses as upbeat data supports

* Firm local housing data adds to case for rate hike

* Bond futures stage late revival

SYDNEY, Aug 10 - The Australian dollar recovered from one-week lows on Monday as a raft of upbeat economic data at home and abroad stoked optimism about a global economic recovery, backing speculation local interest rates may soon need to rise.

The Aussie <AUD=D4> climbed to $0.8386, hovering close to a key Fibonacci level of $0.8375, which marks a 61.8 percent retracement of its July-October plunge last year. It had struck a low $0.8329 earlier in the day.

"There's good support for the Aussie right now," said Stephen Roberts, an economist at Nomura. "Even when there are dips, it doesn't dip very far."

The Aussie also rose against a softer yen to 81.55 yen <AUDJPY=>, from Friday's 79.98.

Data on Monday showed mortgage commitments in Australia for owner-occupied houses rose 1.1 percent in June from May, after seasonal adjustments, less than forecasts for a 1.8 percent rise but still reflecting firm demand in the housing market. [ID:SD489197]

That added to speculation Australian rates have bottomed at 3 percent, and may turn up by as soon as October since the Reserve Bank of Australia warned last month that low local rates risked a housing bubble developing.

October interbank futures <0#YIB:> were down 0.055 points at 96.86, giving an implied cash rate of 3.14 percent by October.

"We find ourselves in a world where there is an obvious shortage of housing, vacancy rates are low, prices and rents are on the up," said Adam Carr, a strategist at ICAP.

"Match to that historically low interest rates and a still low unemployment rate - there shouldn't be too many obstacles to strong growth," Carr said.

But bond futures managed to end higher after recovering from earlier sharp losses.

Three-year futures <YTTc1> points were flat at 94.79 after falling as far as a 10-month low of 94.74. Ten-year futures <YTCc1> added 0.01 point to 94.315, after hitting a seven-week low of 94.275.

Monday's buoyant market sentiment was also helped as Friday's optimism over a stronger-than-expected U.S. jobs report was sustained by upbeat economic news from China and Japan.

A government researcher said on Monday he expected China's consumer and producer prices to return to annual growth in the fourth quarter as a recovery in the United States lifts Chinese exports [ID:nPEK285921].

Data from Japan showed machine orders were surprisingly strong, although the outlook was cloudy as manufacturers forecast a sixth straight quarterly fall in orders for July-September. [ID:nT161768].

The upbeat reports supported Asian stock markets on Monday, with shares in Japan hitting a 10-month closing high. [MARKETS/AS]

The Aussie tends to track movements in stock markets as equities are seen as a barometer of risk appetite, and the local dollar is seen as a riskier asset since investors typically take on debt when they buy the currency. ----------------(Snapshot at 4:20 p.m./0620 GMT)---------------- FUTURES CASH YIELD 90-DAY BILL 90-DAY BILL<YBAc1> (SEP) 96.51 (+0.02) AU3MBB=RR 3.32 (3.28) 3-YR BOND <YTTc1> (SEP) 94.79 ( 0.00) AU3YT=RR 5.13 (4.98) 10-YR BOND <YTCc1> (SEP) 94.315(+0.01) AU10YT=RR 5.81 (5.73) AUD/USD <AUD=> 0.8386 (0.8384) US10YT=RR 3.89 (3.77) ---------------------------------------------------------------- AUD VS 2-YR 10-YR *AUD 3-YR/10-YR SPREAD USD +331 (+323) +192 (+196) *FUTURES +0.475(+0.52) CAD +313 (+300) +219 (+217) *AUD 2-YR/10-YR SPREAD NZD +64 (+53) -15 (-15) *CASH +117 (+127) ----------------------------------------------------------------