SYDNEY/WELLINGTON (Reuters) - The Australian and New Zealand dollars jumped to multi-week highs against a battered pound after early results of UK elections suggested a much closer race than anticipated, leaving both currencies with likely hefty weekly gains.
The Aussie however <AUD=D4> took a backseat against its U.S. counterpart at $0.7534, from $0.7549 in early trade.
It was still up 1.2 percent this week, not far from a six-week peak of $0.7568 set on Wednesday following better-than-expected economic growth at home.
Resistance was at $0.7589 and support at $0.7478.
Sterling was the clear session loser, down around 1.3 percent on both the Aussie and New Zealand dollars.
It was last at A$1.6934 <GBPAUD=R>, having dipped to A$1.6861, the lowest since mid-April and was on track for a weekly drop of 1.9 percent.
Ray Attrill, a strategist at National Australia Bank, said he saw room for further slippage in the pound should the Conservative Party of British Prime Minister Theresa May fail to win a majority.
"We should see a full retracement of the April rally with the pound back around the A$1.6600 area," he said.
Likewise, the pound skidded to NZ$1.7723 <GBPNZD=R>, not far from a trough of NZ$1.7627, a level not seen since late March. It has shed 12 pence since mid-May to last trade at NZ$1.7688.
The Aussie and New Zealand dollars were poised for large weekly gains versus the euro and the Canadian dollar.
The New Zealand dollar <NZD=D4> steadied at $0.7215, near Thursday's three-month peak of $0.7223 and set for a weekly gain of 1 percent.
New Zealand government bonds <0#NZTSY=> gained, sending yields 0.5 basis points lower at the long end of the curve.
Australian government bond futures were soft, with the three-year bond contract <YTTc1> off 1 tick at 98.250. The 10-year contract <YTCc1> edged down just under one tick to 97.5625.
(Editing by Biju Dwarakanath)
