The Aussie dollar eased to $0.9700, from $0.9734 on Thursday, not far off a seven-week trough of $0.9664 plumbed earlier in the week.

A broadly firmer USD, which is at seven-week highs, pushed the Aussie to a session low of $0.9686.

Traders say talk of Japanese demand for USD triggered stops below $0.9695 in a thin market due to the US Thanksgiving holiday. Immediate support at Thursday's low of $0.9683.

Aussie set to retest the Oct. 4 low of $0.9388, having retraced around 76.4 pct of the October rally. It is down nearly 3 pct this week and 8 pct lower this month.

NZ dollar hovers around $0.7400, having touched an eight-month low of $0.7387 mid-week. It is down 2 pct this week and more than 8 pct lower so far this month.

Kiwi seen on track to test $0.7120, ahead of minor support around $0.7385 and $0.7330, with resistance starting around $0.7455 towards $0.7500.

The Antipodeans still on the defensive against the yen, with the Aussie around 74.89 yen, a touch above seven-week low of 74.72 struck on Thursday. Kiwi holding at 57.20 yen, within striking distance of Thursday's eight-month low of 56.98.

Investors unnerved by unproductive talks among euro zone leaders and Germany's persistant opposition to a joint euro zone bond as well as a bigger role for the ECB to tackle the crisis.

New Zealand's general election on Saturday is expected to see the ruling National Party returned to power. It has a commanding lead in the polls, but it is unclear whether it will have an outright majority or need minor party support.

NZ government bonds lower, with yields as much as 2.5 bps higher at long end of the curve.

Aussie debt futures remain well-bid, with the three-year contract 0.02 points higher at 96.960, having jumped to a 3-yr peak of 97.030 in the last session. The 10-year contract adds 0.01 points to 96.115, still near an all-time high of 96.170 struck on Thursday.