Dollar higher ahead of jobs data
At 0700 AEDT on Friday, the local unit was trading at 88.88 US cents, up from 88.69 cents on Thursday.
BK Asset Management MD Kathy Lien said most major currencies aren’t having much of a reaction to any economic data ahead of the US jobs numbers.
“We did have those good Australian retail figures (on Thursday) but they didn’t give too much support for the currency,” she said from New York.
“I think overall the Aussie itself is treading water ahead of the Chinese trade numbers as well as the US non-farm payrolls report.
“The foreign exchange market in general is in freeze mode ahead of the US jobs numbers.”
The employment number are considered crucial to decisions to be made at the US Federal Reserve’s next policy meeting on January 28-29.
The Fed is expected to decide on how much further it will scale back it’s massive economic stimulus program, and a good jobs data will cement expectation of more tapering.
“I think if we get a really good jobs number in the US we could see the Aussie break lower to 88 US cents,” Lien said.
She expects the Australian dollar to trade in a range between 88.40 US cents and 89.00 cents on Friday, ahead of the US payrolls report.
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