SYDNEY, May 14 (Reuters) - The Australian and New Zealand dollars marked time on Tuesday as the world awaits the latest U.S. inflation reading, while the bond market kept an eye out for details of the Australian government's annual budget later today.

The Aussie idled at $0.6605, having bounced between $0.6586 and $0.6629 overnight. Major resistance lies at $0.6650, with support at $0.6558.

The kiwi dollar edged up to $0.6022, after finding support around $0.6000. Major chart levels are the $0.6040/50 zone and at $0.5982

Australia's Labor government releases its annual budget later on Tuesday and has flagged cost-of-living relief that it says will temporarily lower consumer price inflation.

Treasurer Jim Chalmers said current headline inflation of 3.6% could be back in the Reserve Bank of Australia's (RBA) 2-3% target band by the end of this year, while the bank itself is forecasting inflation at 3.8%.

If proved correct, such a slowdown might open the door to an earlier rate cut from the RBA. However, analysts caution the budget relief is likely to have much less impact on key core measures of inflation.

"It might lower headline inflation, but unless these measures are permanent, the RBA is likely to look through them," said Rodrigo Catril, a senior FX analyst at NAB.

"The impact on underlying inflation may also prove to be minimal, if not inflationary, given subsidies are a transfer to household's income."

Markets are still pricing in around a 15% chance the next move in rates will be up, and see almost no prospect of an easing this year

The government has already signalled that its budget for the current 2023/24 year will be in surplus to the tune of about A$9.3 billion ($6.15 billion).

Analysts assume the budget will swing into deficit in the next few years, though the sums will be relatively small at around 1% of gross domestic product on average.

The government will have to borrow more to fund those shortfalls and cover past debt that is rolling over, but again the amounts are modest by international standards.

Analysts expect bond issuance will rise to between A$80 billion and A$90 billion for 2024/25, from A$50 billion this fiscal year, though the U.S. Treasury sold more than twice that much debt just last week.

This is one reason Australian debt is rated triple A and the country can currently borrow for 10 years at 15 basis points below what the United States pays.

($1 = 1.5131 Australian dollars) (Reporting by Wayne Cole Editing by Shri Navaratnam)