Rates At 0620 GMT Latest Change AUD/USD 1.0500 +0.10% AUD/JPY 80.49 +0.09% 6.50% May, 2013 3.6447% -0.0903 4.50% April, 2020 4.2738% -0.1218 10-Yr Spread To U.S. +231 bps +7 bps SFE Sep 3-Year Futures 96.30 +0.11 SFE Sep 10-Year Futures 95.64 +0.13 SYDNEY (Dow Jones)--The Australian dollar traded in a narrow range Thursday as a recovery from the sell-off of last week sputtered out on technical resistance. Still, Australian bonds surged on both ends of the curve as the ongoing concern about slowing growth continued to push investors across the world into the safety of the country's AAA-rated debt. The Australian dollar spent much of the U.S. and European session gaining strength, only to see much of its upward momentum evaporate in Asia trading. Part of the weakness reflected profit-taking following a big move in the currency that pushed it to resistance at US$1.0550. Weak stocks in the region also weighed on the Australian dollar. But Richard Grace, chief currency strategist at Commonwealth Bank of Australia, said he expected more gains in the coming hours and days. "Even though the risks have not evaporated, the Aussie should continue to grind higher as it has the last couple days. We could see a move to US$1.0550 and then US$1.0600," said Grace. At 0620 GMT, the Australian dollar was at US$1.0500, up slightly from US$1.0489 late Wednesday. Against the Japanese yen, the Australian dollar was at Y80.49, up from Y80.42. For the bond market, much of the action was once again in the long end of the bond curve with investors seeking the safer returns of longer-term debt. This has lead to a flattening in the yield curve, the difference in yields between 3-year and 10-year bonds, with traders noting the 10-year bond futures contract was poised to mark a new closing high in the session. "The data in the U.S. has actually been OK the last couple of days but yields just won't stop pushing lower," said Peter Jolly, head of research at National Australia Bank. "And, this ongoing concern about growth and the inability of policy makers to maneuver is going to keep those yields low." -By Geoffrey Rogow, Dow Jones Newswires; +61-2-8272-4686; geoffrey.rogow@dowjones.com (Data provided by Reuters)

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