By Gyles Beckford and Cecile Lefort

SYDNEY/WELLINGTON, Aug 2 (Reuters) - The Australian and New Zealand dollars were under the cosh on Friday after upbeat U.S. economic figures lifted the U.S. dollar, putting them on track to end the week sharply lower.

The Aussie fell to a fresh three-year low of $0.8889, from $0.8924 in early trade after key option barriers at 89 cents gave away.

It was on track to post the largest weekly loss in two years at 4 percent and last stood at $0.8908.

'It will go well into the 88 cents range today because of USD strength,' said a trader at a European bank in Singapore, seeing the influential U.S. nonfarm payrolls report due out later on Friday as another worry for the Australian dollar.

'Regardless of the data's outcome, the Aussie will suffer. It certainly won't rally much,' he said, forecasting the Aussie as low as 87 cents within two months.

The Aussie also struck fresh three-year lows on the euro and pound and broke below 69 on a trade-weighted basis, a level not seen since 2010.

The Aussie has been hit hard following dovish comments by the Reserve Bank of Australia (RBA) on Tuesday which prompted markets to not only price in a cut in interest rates next week, but a second easing before year-end.

Swap rates now imply a 91 percent chance that rates will fall to a record low of 2.50 percent at the RBA's policy meeting on Aug. 6, while a poll of 22 economists unanimously forecasts a cut.

Markets pricing implies a second easing before year-end, seeing interbank rates at 2.24 percent in December.

As a result, the premium offered by Australian debt shrank. The gap between 10-year Australian and U.S. yields was down at 105 basis points, its lowest since 2008.

The New Zealand dollar also nursed its wounds at $0.7900, after an overnight battering which had sent it to a two-week low of $0.7853.

The currency is down more than 2 percent this week as it awaits the U.S. jobs numbers.

'With the risk to the NZ dollar remaining to the downside, any rallies up towards $0.79 should be sold into, with the currency looking to test the $0.77 zone,' said ASB Bank economist Christina Leung.

Support was seen at the overnight low with resistance at $0.7931.

Still, the kiwi continued to outperform the Aussie, which hit a five-year trough around NZ$1.1196 on Thursday.

Data out next week are expected to show steady wage growth and a jobless rate little changed on modest employment gains.

New Zealand government bond prices were weak, sending yields 8 basis points higher along the curve.

Australian government bond futures fell in line with a sharp drop in U.S. Treasury prices. The three-year bond contract was 0.06 points lower at 97.390, pulling away from a six-week peak of 97.470. The 10-year contract retreated 0.105 points to 96.220.

(Editing by Jacqueline Wong) Keywords: MARKETS AUSTRALIA/FOREX

(Cecile.Lefort@thomsonreuters.com)(+61 2 9373-1234)(Reuters Messaging: cecile.lefort.thomsonreuters@reuters.net)

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