Australian & NZ dlrs buoyed by US stocks, stubborn resistance ahead

* Antipodeans boosted as M&A deals revive risk sentiment

* Aussie in sight of Jan 2014 peak

By Cecile Lefort and Naomi Tajitsu

SYDNEY/WELLINGTON, Feb 25 (Reuters) - The Australian and New Zealand dollars held overnight gains on Tuesday, tackling major resistance levels once again after bustling merger activity in the United States boosted investor sentiment.

The Aussie AUD=D4 rose to $0.9032, having gained half a cent in the previous session to pull closer to a peak of $0.9081 touched last week.

It managed to bounce from key support between $0.8915/30. The currency was now approaching equally stubborn resistance around $0.9080-90, comprising this year's peak of $0.9087 and a 38.2 percent retracement of the $0.9758 to $0.8660 fall.

A break above $0.9090 would target the 200-day moving average at $0.9113.

Much of the recent strength came after investors cheered a frenzy of merger and acquisition activity, sending the S&P 500 to a record intraday high.

Also helping sentiment was a surprise improvement in German business morale and a ratings upgrade for Spain.

"Risk is back on and the Aussie is back over 90 cents. It will range-trade there until (Australia's December) capex data on Thursday," said Annette Beacher, head of Asia-Pacific FX research at TD Securities in Singapore.

Australia's business spending plans are due this week with much attention on signs activity outside the resource sector is picking up. ECONAU

While economists forecast a flat outcome following last quarter's bumper numbers, TD's Beacher expects a decent turnaround in service investment.

"It would confirm the non-mining sector is starting to take up some growth," she said.

Beacher warned, however, that were the data to show a fall in investment outside of mining it would likely send the Aussie back below 90 cents.

The New Zealand dollar NZD=D4 traded at $0.8330, holding gains after popping up to $0.8342 in offshore trade.

It also rallied to a one-week high against the euro

EURNZD=R around NZ$1.6456, while gaining on the yen NZDJPY=R and most other currencies. It was little changed against the Aussie AUDNZD=R .

The kiwi recovered from a dip on Monday which had taken it down to strong support around $0.8260, the 21- and 55-day moving average. Market participants expected that level to hold, while gains would be capped by offers approaching $0.8400.

"There seems to be little on the immediate horizon that would provoke a shift higher, and the market is clearly uncomfortable with venturing below $0.8260," Bank of New Zealand analysts said in a note.

The kiwi has been supported by expectations that New Zealand interest rates will begin rising next month, while the economy is seen outperforming in 2014.

New Zealand government bonds 0#NZTSY= were unchanged in early trade.

Australian government bond futures had a soft touch with the three-year bond contract YTTc1 down 2 ticks at 96.980. The 10-year contract lost 1 tick to 95.875.

(Editing by Eric Meijer)

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

Keywords: MARKETS AUSTRALIA/FOREX