EMERGING MARKETS-Latam FX rebounds, consolidation period seen

* Currencies bounce back from steep losses this week

* Real, Mexican peso set for range trading

* Brazil real firms 0.25 pct, Mexico peso 0.31 pct

By Michael O'Boyle

MEXICO CITY, April 13 (Reuters) - Latin America's biggest currencies firmed on Wednesday on a rebound in U.S. stocks and commodity prices, and Chile's peso got a boost from an aggressive interest rate hike on Tuesday.

Brazil's real bounced back after recording its biggest slump in three months in the previous session. Mexico's peso was also recovering from its sharpest losses in a month.

Traders said Latin American currencies would likely trade in a range bounded by recent highs as investors eye whether riskier assets like stocks, commodities and emerging market currencies can resume a recent uptrend or lose steam.

"We should be in a period of consolidation of the recent gains and waiting for some data to see if we can continue rallying, or if we could see a correction," said Jorge Perez Duarte, a managing director for emerging markets at TD Securities in Toronto.

"You really need to see stronger growth to keep fueling this rally and the risk is to see weaker growth," he added.

Investors will watch upcoming data in major economies such as the United States to see if high oil prices are weighing on global growth.

Mexico's peso firmed 0.31 percent to 11.7985 per dollar after pulling back this week from its strongest level since October 2008.

Backing Wednesday's rebound, U.S. stocks rose after JPMorgan Chase's earnings beat expectations and spurred bets that other banks' results will be strong. [.N]

Solid economic growth across Latin America, as well as expectations that U.S. interest rates will remain ultra-low for some time, are supporting the region's currencies and encouraging investors to snap up assets on dips.

Investors have been borrowing funds in low-yield currencies such as the dollar to buy Latin America's higher-yielding debt.

Brazil's real bid 0.25 percent firmer to 1.587 per dollar. Investors are betting that Brazilian authorities are unwilling to implement stronger capital controls to contain the real's recent gains.

But central bank dollar purchases could contain the currency's advance after the real surged around 5 percent in the prior 2 weeks to hit its strongest since August 2008.

"I do not think they will take more drastic steps, because inflation is out of control," said Mario Battistel at brokerage Fair. "Let us see if the central bank interventions can hold the real," he added.

Chile's peso bid 0.37 percent stronger at 472 per dollar. Chile's central bank raised its benchmark interest rate on Tuesday to the highest level in more than two years, as it tries to get ahead of inflation expectations. [ID:nN12148345] (Additional reporting by Nathalia Ferreira in Sao Paulo; Editing by Dan Grebler)