Australia, NZ dollars drift lower as US payrolls loom

Dec 15 (Reuters) - The Australian and New Zealand dollars drifted lower on Monday as investors braced for delayed U.S. jobs data this week that could shape the interest rate outlook next year.

This week will also bring mid-year budget updates from both the Australian and New Zealand governments.

The Aussie AUD= slipped 0.1% to $0.6648, having edged up 0.2% last week. It is slowly drifting away from a three-month top of $0.6685 hit last Wednesday after the Reserve Bank of Australia flagged a risk of policy tightening as inflation surged after three rate cuts this year.

The kiwi dollar was also off 0.1% at $0.5800 NZD=, having climbed 0.5% last week to reach a two-month high of $0.5831. It is now up almost 4% from its November trough of $0.5581 after the Reserve Bank of New Zealand, in a surprise move, signalled it was done easing.

The U.S. dollar steadied above a two-month low against its major peers ahead of the delayed U.S. payrolls report for November on Tuesday. Forecasts are centred on a small 40,000 rise in employment, while the jobless rate likely held steady at 4.4%.

Any unexpected weakness could lead investors to price in more policy easing next year and weigh on the U.S. dollar. Futures imply just a 24% probability of a rate cut in January and an about 50% chance of a move in March. The Fed has signalled only one rate cut for next year. 0#USDIRPR

New Zealand is expected to provide a mid-year budget update on Tuesday and will also release third-quarter GDP data on Thursday.

New Zealand's public finances are "in a healthier state than expected," said Jarrod Kerr, chief economist at New Zealand's Kiwibank. "The 2026 fiscal year, however, is running slightly behind forecast."

Much focus will be on the government's bond issuance programme and the fiscal impulse, although that is not expected to change, Kerr added.

Data on Thursday are expected to show the New Zealand's economy grew at a healthy rate of 0.9% in the last quarter, after a 0.9% contraction the quarter before. That could suggest the economy is picking up pace after aggressive rate cuts.

Australia's labor government is expected to unveil its mid-year budget update on Wednesday. Treasurer Jim Chalmers has said the government will not extend electricity rebates for Australian households when they expire at the year end as underlying budget positions deteriorate amid spending pressures.