Aussie edges up after falling to near 4-week lows

__________AUSTRALIAN CREDIT/FOREX (0100 GMT) SNAPSHOT__________ FOREIGN EXCHANGE (against previous Sydney close) <AUD=> 0.9010/12 (0.9161/64) <AUDNZD=R>1.2551/63 (1.2510/22) <AUDJPY=R> 81.12/18 (83.48/54) <JPY=> 90.04/06 (91.13/17) <AUDEUR=R> 0.6116/19(0.6169/72) <EUR=> 1.4729/33 (1.4848/51) DEBT FUTURES CASH YIELDS 90-DAY BILL<YBAc1> (DEC) 95.81 ( 0.00) <AU3MBB=RR> 3.66(3.65) 3-YR BOND <YTTc1> (DEC) 95.90 (+0.040) <AU3YT=RR> 4.98(5.02) 10-YR BOND <YTCc1> (DEC) 94.48 (+0.060) <AU10YT=RR> 5.57(5.62) 3/10 SPREAD +0.90 (+0.94) AUST/US 10-YR SPREAD +217(+213) S&P/ASX 200 4548.5 (4643.2) US10-YR <US10YT=RR> 3.40(3.49) __________________________ Nov 2______________________________

DATA: Australia Q3 house price index rose 4.2 percent, quarter-on-quarter, handily beating forecasts of 3.0 percent. For the year, house prices were up 6.2 percent.

The TD Securities-Melbourne Institute said on Monday its monthly inflation gauge dipped 0.3 percent in October. The annual pace of inflation slowed to 1.2 percent, from 1.3 percent in September and highs near 5 percent last year.

NEWS: The Australian government revised its economic growth forecast to 1.5 percent for the year to end-June 2010, up from a 0.5 percent contraction predicted in May. The Treasury forecast fewer jobless than expected in May, cutting its jobless forecast to peak at 6.75 percent in 2009/10. Previously, the peak was seen at 8.5 percent in 2010/11. [nSYD478854]. ---------------------------------------------------------------

* The Australian dollar recouped some of its sharp losses made earlier in the session, receiving support around the psychological $0.8900 level as an aggressive sell-off in high-yielders paused for breath.

* Shortly after midday, the Aussie was at $0.9010, down from $0.9161 seen late here on Friday. It fell to as low as $0.8907 which was its lowest since Oct. 8 as speculators booked profits on a rally that had taken it to a 14-month high of $0.9330 on Oct. 21.

* On the yen, it fell much more sharply, before paring some of those losses. The Aussie regained ground above 80 yen <AUDJPY=R>, having fallen to as low as 79.45 yen, which was again the lowest level since Oct. 8.

* The U.S. dollar, traded above the 76 mark against a basket of currencies <.DXY>, pulling away from a 14-month low of 74.94. The yen <JPY=> also rose broadly, having risen to as high as 89.18 per dollar.

* But the Aussie could receive some support from a possible rate rise this week by the Reserve Bank of Australia (RBA). The RBA is widely expected to raise its cash rate by 25 basis points to 3.5 percent at its monthly policy meeting on Tuesday [AU/INT].

* Australian bond futures rallied on safe-haven inflows which gathered pace as stocks fell and confidence in global economic recovery weakened.

* Three-year futures <YTTc1> were 0.04 points higher at 94.90 and the 10-year contract <YTCc1> was 0.06 points higher at 94.48.