Australia, NZ dollars on back foot as US jobs data loom

SYDNEY, Jan 9 (Reuters) - The Australian and New Zealand dollars were on the back foot on Friday as traders positioned for the U.S. payrolls report, the first clean read after the government shutdown, which could help decide how much policy easing will be needed this year.

Eyes are also on a forthcoming U.S. Supreme Court decision on President Donald Trump's use of emergency tariff powers.

The Aussie AUD=D3 was flat at $0.6698, having eased 0.3% overnight to mark a second day of declines from the 15-month peak of $0.6766. Resistance is around 67 cents and $0.6705, while support is at $0.6686.

The kiwi dollar NZD=D3 slipped 0.1% to $0.5744, after falling also 0.3% overnight, down for the third consecutive session. Support is around $0.5740.

Overnight, the U.S. dollar hit the highest level in a month against its major peers as investors braced for the all-important non-farm payrolls data. Forecasts are centred on a rise of 60,000 jobs, while the unemployment rate likely edged lower to 4.5%, from 4.6% previously.

A strong report might put into question the whole rationale for easing from the Federal Reserve this year while a weak result would boost expectations of more rate cuts. Investors see little chance of a rate cut in January but there are a little over two cuts priced in for all of 2026. 0#USDIRPR

"Short USD positioning is starting to look a little crowded," said analysts at TD Securities in a note to clients.

"US data seasonality tends to be strong in Q1 which can lead to a tactical bounce in the USD vs the likes of EUR and AUD where positioning is stretched."

Investors reduced the risk of a rate hike from the Reserve Bank of Australia in February to just 24%, while there is a total tightening of about 30 basis point for 2026, just a little over one rate hike.

The Reserve Bank of New Zealand is widely expected to hold rates steady at 2.25% through the first half of the year, with a rate hike not fully priced in by October.