SYDNEY/WELLINGTON: The Australian and New Zealand dollars slipped on Friday as risk sentiment took a knock after alarmingly high US jobless claims and Victoria state's entry into a five-day snap lockdown after a fresh coronavirus outbreak in Melbourne linked to the UK strain.

The Australian dollar was off 0.2% at $0.7739 as the lockdown, starting at midnight on Friday, in the country's second-most populous state cast a shadow over broader economic recovery hopes.

For the week, it is so far up 0.6%.

The New Zealand dollar was also slightly weaker at $0.7213 but was on track for a small weekly gain.

Three-year yields are pinned at 0.12% thanks to the Reserve Bank of Australia's (RBA) yield curve control policy. Ten-year yields stood at 1.214%, keeping the yield curve step at 109 basis points.