* RBA minutes reiterate steady rate outlook
* Aussie up 1-1/2 yen in one session as risk sentiment improves
* Eyes on U.S. Fed and Crimea, still
By Gyles Beckford and Cecile Lefort
SYDNEY/WELLINGTON, March 18 (Reuters) - The Australian and New Zealand dollars were firm on Tuesday as concerns over the Ukraine/Crimea crisis waned for the moment, while Australia's central bank reiterated that rates were likely to be kept on hold for some time.
The Aussie
The Aussie was pulling closer to the five-month peak of 94.47 set in early March.
Risk appetite improved as the threat of immediate military conflict in Ukraine receded for now, with investors awaiting the conclusion of the U.S. Federal Reserve's two-day meeting on Wednesday.
"I see a stronger Aussie until the Fed does something," said Roger Bridges, head of fixed income at Tyndall Investment Management, seeing the U.S. central bank sticking with its current tapering programme.
He forecast the Aussie would trade between 85 cents and 90 cents in the near term with an upside risk due to a generally weaker U.S. dollar.
At home, minutes of the March policy meeting showed the Reserve Bank of Australia (RBA) strengthened its view of a stable interest rate outlook.
It also said while the fall in the local dollar to date would help the economy achieve balanced growth, the currency remained high by historical standards.
The central bank has long favoured a lower Aussie dollar to boost exports and help the economy transition from resource-led activity to other sectors.
Recent upbeat data in Australia has led markets to price out almost any chance of further easing with interbank futures
current record-low 2.5 percent. Swap markets give a small chance of a hike on a 12-month horizon.
Strong chart resistance for the Aussie was found between $0.9135 and $0.9150.
The New Zealand dollar
"Price action post last week's move suggests the market is still not yet overly long the New Zealand dollar, though there are a couple of risks to the near-term outlook which suggest some caution," Westpac senior strategist Imre Speizer wrote in a market commentary.
The particular risks were the Crimea tensions and concerns about China's economy, while potentially stronger data out of the United States reflecting improved weather might support the U.S. dollar.
The kiwi was trading a thin range, with near-term support around $0.8542. Initial resistance was at Monday's high of $0.8583 ahead of a more substantial barrier at the year-to-date high of $0.8607.
The better risk sentiment saw it notch modest gains against the safe-haven yen to 87.36 yen
The currency is seen following broader market forces ahead of the Fed announcement later this week, with an eye to New Zealand's fourth quarter gross domestic product data on Thursday. A Reuters poll forecasts 0.9 percent growth compared to the previous quarter.
New Zealand government bonds
The improvement in risk sentiment sent Australian government bond futures lower 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