* Aussie resilient to lower commodity prices, geopolitical risk
* Euro down 0.6 pct vs AUD for the week
* NZD hurt by fall in business confidence
By Cecile Lefort and Naomi Tajitsu
WELLINGTON/SYDNEY, Aug 29 (Reuters) - The Australian dollar held near 2014 peaks versus the euro, yen and pound on Friday, putting it on track for a 0.6 percent monthly gain, while the New Zealand dollar slipped following another drop in business confidence.
Yet again, the Australian dollar
It held steady at $0.9352, not far from a three-week peak of $0.9374 touched Thursday, to show a 0.6 percent increase for the month. The Aussie remained firmly entrenched in the 92-95 U.S. cent range seen for much of this year.
Joseph Capurso, a strategist at Commonwealth Bank of Australia, sees a period of volatility for the Aussie as next week is packed with events including the Reserve Bank of Australia's monthly policy meeting on Tuesday and gross domestic product data (GDP) the next day.
"The RBA may tweak its language and a negative GDP reading could also move the Aussie a fair bit," he said. CBA expects GDP to rise between 0.3 and 0.5 percent for the second quarter, but there is a risk it might show a contraction.
Dealers cited selling orders around $0.9375/80, with a large amount of stops above 94 cents.
Against other currencies, the Aussie was underpinned by demand from carry trade investors, borrowing in a currency to buy higher-yielding Aussie dollar assets.
The Aussie held near 10-month peaks against a battered euro which skidded as far as A$1.4056
The Aussie kept near 15-month peaks on the yen
The New Zealand dollar has come under broad pressure due to falling milk prices and expectations the Reserve Bank of New Zealand will slow its tightening pace.
The kiwi slipped to $0.8361
It took a fresh hit after a survey showed New Zealand business confidence falling for a sixth consecutive month in August.
"There were strong bids (around $0.8300) earlier in the week, but we've got very little down there now," said Tim Kelleher, head of institutional sales at ASB in Auckland.
The kiwi may face more selling risk ahead of a general election on Sept. 20. While the latest media polls show the ruling National party winning around 50.8 percent of the vote, support has been waning, raising the risk of a hung parliament.
"The market had been thinking it would be a National shoe-in but the closer we get, there's nothing priced in for a hung parliament," Kelleher said. Options volatility in the kiwi could rise in the coming weeks as investors hedge against political risk, he added.
Most New Zealand government bonds
Australian government bond futures rose, with the three-year bond contract
Cash government 10-year bond yields remained close to their lowest in more than a year with Australian debt
(Editing by Shri Navaratnam) ((Cecile.Lefort@thomsonreuters.com)(+61 2 9373-1234)(Reuters Messaging: cecile.lefort.thomsonreuters@reuters.net))
Keywords: MARKETS AUSTRALIA/FOREX




















