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Aussie and NZ dlrs supported off lows, eyes on U.S. jobs

Thursday, 4 Oct 2012 | 5:11 PM ET

WELLINGTON/SYDNEY, Oct 5 (Reuters) - The Australian and New Zealand dollars were supported above recent lows on Friday helped by firmer equities and strong talk about bond buying from the head of the European Central Bank, while investors awaited key U.S. jobs data.

* The Aussie dollar at around $1.240 from Thursday's late local level around $1.0226. It ranged $1.0205 to $1.0273 overnight

* The Aussie has fallen around 1.5 percent so far this week, with much of the pressure coming from an interest rate cut on Tuesday that took some in the market by surprise. Soft trade and retail sales numbers have also weighed.

* Investors are convinced the Reserve Bank of Australia will cut again, with interbank futures pricing in a 64 percent chance of a cut to 3.0 percent next month. The market has 93 basis points worth of easing factored in over the next 12 months.

* Aussie strong support is found at $1.0165, the September low, while Tuesday's low of $1.0298 seen capping the topside.

* The New Zealand dollar around $0.8220 just above Thursday's late local level, after dipping to a near one-month low of $0.8165 overnight, with selling by macro and speculative traders offset by support from domestic and commercial names.

* Kiwi, which is down around 1 percent this week, is seen consolidating but with downside risks. Support at around the double low of late September at $0.8184, ahead of $0.8140, with the 20 day moving average around $0.8240 the first hurdle ahead of $0.828.

* The euro hits two-week highs against the U.S. dollar and yen after the European Central Bank's chief says the ECB was ready to implement a bond-buying programme that would lower borrowing costs for debt-stricken countries.

* ECB holds its benchmark rate at 0.75 percent as expected. ECB head Draghi gives assurance the bank has a "fully effective backstop mechanism in place" to implement the plan, although no specifics given.

* Yen sluggish with investors wary the Bank of Japan may surprise by easing policy, after its decision last month to boost its asset buying programme.

* All eyes on U.S. non-farm payrolls data due later on Friday, with expectations for 113,000 jobs to be added with the jobless rate rising a tick to 8.2 pct.

* Euro notches solid gains aga9inst the Antipodeans, up around 0.6 percent at A$1.2710 and NZ$1.5836 .

* However, Aussie and kiwi make modest gains against the yen, up around 0.2 percent at 80.32 AND 64.50 .

* Aussie holds steady against the kiwi after recouping some of the recent losses, trading last at NZ$1.2456 . It hit a one year low of NZ$1.2361 earlier this week.

* No data in either Australia or New Zealand on Friday, leaving them to consolidate within recent ranges ahead of the BoJ and then await U.S. jobs numbers.

* New Zealand government bonds open with a modest offered tone, that sees yields up 2.5 basis points along the curve.

* Australian government bond futures fall with three-year contract down 0.07 points to 97.610, while the 10-year contract eases 0.065 points to 97.055.

((Australia/New Zealand bureaux)(+61 2 9373 1800/+64 4 802 7980))

Keywords: MARKETS AUSTRALIA NEWZEALAND/FOREX