* Australian retail sales up 0.4 pct, trade deficit narrows
* Aussie at 15-mth peak vs yen & 9-mth highs vs pound and Swissy
* NZD off 6-mth lows vs USD
By Gyles Beckford and Cecile Lefort
WELLINGTON/SYDNEY, Sept 4 (Reuters) - The Australian and New Zealand dollars bounced off lows versus their U.S. counterpart on Thursday, while the Aussie climbed to multi-month highs against everything else after solid economic data underpinned sentiment.
The Australian dollar
Aussie bulls had already been relieved on Wednesday after firmer-than-expected gross domestic product data dispelled fears that economic growth had stalled in the second quarter.
The Aussie was last at $0.9355, having been stuck in a very familiar band of $0.9200-$0.9500 seen since March.
"With the Aussie so stable, it reduces fears of long-term investors as the Aussie has been prone to steep declines in the past," said Sean Callow, a senior currency strategist at Westpac. "And low volatility encourages carry trade."
Indeed, carry trade demand, borrowing in a low-rate currency to buy higher-yielding Aussie assets, has been a key factor underpinning the Aussie across the board.
It rose to a 15-month peak of 98.18 yen
It has gained 10 yen since a trough in February with charts suggesting more gains ahead. It was last at 98.12 and a break of 98.18 would open the way to 99 yen.
The Aussie also stood tall against the euro, hovering around 14-month peaks
The New Zealand dollar
The Aussie outpaced the kiwi, to touch a nine-month high of NZ$1.1245
"Aussie looks like it's onwards and upwards against the kiwi for the long haul," said Westpac senior currency strategist Imre Speizer, saying the Aussie could reach NZ$1.1400 by year end.
Against other majors the kiwi was a touch softer, giving ground to the euro and sterling, and flat on the yen ahead of meetings of the ECB and Bank of Japan.
The only local data was Quotable Value's monthly house price index, which showed a further slowing of growth in house prices.
New Zealand government bonds
Australian government bond futures were steady, with the three-year bond contract
(Editing by Eric Meijer) ((Cecile.Lefort@thomsonreuters.com)(+61 2 9373-1234)(Reuters Messaging: cecile.lefort.thomsonreuters@reuters.net))
Keywords: MARKETS AUSTRALIA/FOREX




















