Aussie holds firm on optimism about global economy

______________AUSTRALIAN CREDIT/FOREX SNAPSHOT__________________ FOREIGN EXCHANGE AT 0000 GMT (against previous Sydney close) <AUD=> 0.7185/90 (0.7031/34) <AUDNZD=R>1.2201/12(1.2374/90) <AUDJPY=R> 71.75/81 (69.49/53) <JPY=> 99.89/90 (98.83/85) <AUDEUR=R> 0.5337/43 (0.5214/19) <EUR=> 1.3453/60(1.3266/68) DEBT FUTURES CASH YIELDS 90-DAY BILL<YBAc1> (JUN) 97.10 (-0.04) <AU3MBB=RR> 3.14(3.09) 3-YR BOND <YTTc1> (JUN) 96.49 (-0.12) <AU3YT=RR> 3.53(3.40) 10-YR BOND <YTCc1> (JUN) 95.57 (-0.06) <AU10YT=RR> 4.63(4.57) 3/10 SPREAD +0.920 (+0.970) AUST/US 10-YR SPREAD +187(+189) S&P/ASX 200 3728.2 (3680.2) US10-YR <US10YT=RR> 2.76(2.68) ----------------------------April 3-----------------------------

DATA: The Australian Industry Group (AiG)-Commonwealth Bank Performance of Services Index (PSI) rose 3.4 points to 35.6 in March, recovering some of February's steep 8.8 point drop. [nSYD372428].

- The Australian Federal Chamber of Automotive Industries said vehicle sales were down 17.1 percent in March, compared to the same month in 2008 and a drop of 21.9 percent in February. [nSYD376550]

DEBT: The Australian Office of Financial Management sold bonds worth A$600 million, maturing in 2013 bonds at a yield of 3.8374 pct at a tender held on Friday.

New South Wales Treasury Corp (TCorp) has added A$40 million ($28.6 million) of 2025 capital indexed bonds yielding 2.95 percent, it said on Friday. ---------------------------------------------------------------- - * The Australian dollar <AUD=> hit a three-month high against the U.S. dollar and a five-month peak on the yen on Friday amid renewed investor optimism about the global economy after major world leaders pledged billions of dollars in aid.

* Higher stocks and commodities offered the high-yielding Aussie dollar plenty of support. Regional stocks were firmer on hopes the worst may be past for U.S. economy and after a tweak in U.S. accounting rules. The new mark-to-market rules are expected to provide banks more flexibility on treating toxic assets.

* Shortly after midday, the Aussie was at $0.7185 against the U.S. dollar, off a high of $0.7230 which was its strongest level since January 7.

* Against the yen, the Aussie gained to 72.31 yen <AUDJPY=R>, from Thursday's 69.49 yen, and it highest level since Oct. 14. With risk appetite improving at the start of the quarter, Japanese funds continued to buy Australian assets.

* The CRB index <.CRB> surged nearly 4 percent on Thursday with copper rising to 5-month highs as investors cheered the G20 measures which could halt a deeper global recession.

* Aussie rose to a fresh 12-week high against the euro, advancing to 0.5359 euros <AUDEUR=R>. The European Central Bank cut rates by a less-than-expected 25 basis points and failed to commit to quantitative easing measures.

* Australian bond futures were weaker as the rally in stocks dimmed the allure of safe-haven bonds.

* Bill futures also eased as the rally in stocks and improved global mood led investors to trim the chance of a rate cut from the Reserve Bank of Australia (RBA) next week.

* Three-year bond futures <YTTc1> eased 0.125 points to 96.485, while the 10-year contract <YTCc1> was down 0.07 points to 95.56. For Reuters data on current Australian bond pricing, double-click on <YIELDBROKER>.