Aussie firm on bullish RBA; 3-mth high vs NZ$

__________AUSTRALIAN CREDIT/FOREX (0130 GMT) SNAPSHOT__________ FOREIGN EXCHANGE (against previous Sydney close) <AUD=> 0.9114/19 (0.9022/25) <AUDNZD=R>1.2655/66 (1.2573/87) <AUDJPY=R> 82.72/76 (81.49/56) <JPY=> 90.72/77 (90.42/45) <AUDEUR=R> 0.6131/34(0.6127/30) <EUR=> 1.4869/73 (1.4837/40) DEBT FUTURES CASH YIELDS 90-DAY BILL<YBAc1> (DEC) 95.85 (-0.03) <AU3MBB=RR> 3.63(3.62) 3-YR BOND <YTTc1> (DEC) 94.87 (-0.06) <AU3YT=RR> 5.01(4.96) 10-YR BOND <YTCc1> (DEC) 94.355(-0.045) <AU10YT=RR> 5.69(5.65) 3/10 SPREAD +0.515 (+0.53) AUST/US 10-YR SPREAD +215(+214) S&P/ASX 200 4573.5 (4508.0) US10-YR <US10YT=RR> 3.54(3.51) ----------------------------Nov 6------------------------------

DATA: The Reserve Bank of Australia (RBA) said local interest rates will likely have to be raised gradually over time as it sharply upgraded forecasts of economic growth for next year and pointed to a dwindling pool of spare capacity. [ID:nSYC002289] ---------------------------------------------------------------

* Aussie ticked higher after the RBA released a bullish monetary policy statement, which predicted years of above-trend growth driven by rising terms of trade, rapid population growth and a boom in resource investment.

* December interbank futures <0#YIB> show investors are still uncertain whether the RBA will raise rates in December. The December contract show investors are betting on a 58 percent chance of a rate rise next month.

* Whether they go in December or not, markets are still priced for a string of hikes taking rates to 4.75 percent by June.

* RBA Deputy Governor Ric Battellino takes part in a panel discussion on the international outlook at 0620 GMT, though analysts doubt much will be gleened on rates.

* Aussie climbed to as high as $0.9128 before steadying at $0.9115. It is meeting resistance at the 20-day moving average of $0.9140.

* Local dollar also firm on the yen at 82.67 yen <AUDJPY=>, from 81.84 seen here late Thursday.

* It held a three-month high against the New Zealand dollar after breaking a above a key level of NZ$1.26. It was up at NZ$1.2650 <AUDNZD=R>, from Thursday's NZ$1.2573.

* The Bollinger Band and the relative strength index show Aussie is overbought against the Kiwi dollar, although the MACD signal it could climb further in the near term.

* Interbank futures stayed in the red, mirroring recent weakness in U.S. Treasuries.

* Three-year bond futures <YTTc1> dropped 0.05 points to 94.88, and the ten-year contract <YTCc1> lost 0.04 points to 94.36.