Australia & NZ dlrs slip on Ukraine, China

SYDNEY/WELLINGTON, March 3 (Reuters) - The Australian and New Zealand dollars got off to a shaky start on Monday as escalating tensions in Ukraine and more signs of a modest economic slowdown in China dented risk appetite.

The Aussie AUD=D4 slipped to a one-month low of $0.8891, from $0.8930 on Friday, as the market bid up safe havens such as the yen and Swiss franc.

Support was seen at the March 5 low of $0.8872, with resistance around $0.8922, the 61.8 percent retracement of the January-February increase.

Risk sentiment took a hit as Ukraine mobilised for war and Washington threatened to isolate Russia economically, after President Vladimir Putin declared he had the right to invade his neighbour in Moscow's biggest confrontation with the West since the Cold War. Href="NewsSearch">TOP/NEWS

Adding to the pressure China's official Purchasing Managers' Index edged down to 50.2 in February from January's 50.5, though that was a whisker above market expectations. News Search ID:nL3N0LY01N

The Aussie faces plenty of home-grown risks this week with Australia's central bank holding its monthly monetary policy meeting as well as a raft of domestic data including GDP.

ECONAU

Economists unanimously expect the Reserve Bank of Australia to keep rates steady on Tuesday at a record low of 2.5 percent for a seventh month. AU/INT

The statement will be analysed for any mention about the Aussie dollar given it rose 2 percent last month, its largest such increase since October. The central bank has long favoured a lower currency to help support the economy.

Monday's data includes TD-MI inflation gauge and business inventories and company profits.

The New Zealand dollar NZD=D4 eased to $0.8363, from $0.8385 on Friday in New York. It was still holding hefty gains, having risen 3.6 percent in February as the market is convinced the Reserve Bank of New Zealand will start hiking interest rates on March 13, far ahead of most other developed nations.

New Zealand government bonds 0#NZTSY= were firm, sending yields 2 basis points lower along the curve.

Australian government bond hovered near one-month highs with the three-year bond contract YTTc1 indicated 1 tick lower at 97.130. The 10-year contract was indicated 1.5 tick down to 96.025.

(Editing by Wayne Cole)

((Cecile.Lefort@thomsonreuters.com)(+61 2 9373-1234)(Reuters Messaging: cecile.lefort.thomsonreuters@reuters.net))

Keywords: MARKETS AUSTRALIA/FOREX