Aussie & NZ dollars hold gains; RBA cuts growth out look

The Aussie edges down to $1.0395 , from $1.0413 in New York, having rallied overnight as risks of a messy Greek default and global financial chaos diminished for now.

Aussie well-off a two-week low of $1.0203 struck on Wednesday but still 2.8 pct down for the week due to the dramatic developments in Europe .

Reserve Bank of Australia (RBA) says biggest threat to local economy is the ongoing EU debt crisis. As expected, the central bank cut its inflation and growth forecasts for 2012 & 2013.

Earlier this week, it cut rates by 25 basis points to 4.5 pct, the first easing since early 2009 and its quarterly statement gives no hint to future rate moves.

Still interbank futures almost fully priced for another cut to 4.25pc next month and a total easing of 100 bps by June.

Key support for the Aussie seen at $1.0203 with resistance at $1.0450. Talk of Japanese buying of AUD/JPY help underpin AUD/USD, according to a trader.

New Zealand dollar steady at $0.7940, from $.07949 in New York. It is down 3.3 pct for the week so far, with support at $0.7860 and resistance initially at $0.7980.

The Antipodeans extend gains against the yen on improved risk appetite, with the Aussie nudging up to 81.40 yen . It struck a three-month peak of just under 84 yen on Monday following Japan's intervention to weaken its currency against the USD. The kiwi at 62.07 yen , having peaked to 64.51 earlier in the week.

The Aussie sitting around NZ$1.3100 off a 4-1/2 month high of NZ$1.3161 after NZ's soft jobs numbers.

Focus is on a vote of confidence for Greek PM George Papandreou later on Friday and US non-farm payrolls due at 1230GMT with forecast for a gain of 95,000 jobs

New Zealand government bond prices trim losses slightly, but yields sitting as much as 6 basis points higher.

Australian debt futures ease as risk appetite improves with the three-year debt contract down 0.07 points to 96.320, while the 10-year off 0.085 points to 95.665.