Dollar awaits US payroll data
The Australian dollar is higher despite the European Central Bank failing to take decisive action on the euro zone debt crisis.
The dollar is trading around $US1.05, up from 104.77 cents yesterday.
Commonwealth Bank currency strategist Joseph Capurso said it was unclear what was driving the Australian dollar.
However, he said there had been a recovery in the local currency since an indecisive outcome of the European Central Bank (ECB) meeting overnight Australian time.
‘‘There’s no news that’s pushed the Aussie dollar around. There’s no clear reason since that ECB announcement,’’ he said.
‘‘It was a very sharp fall in the Aussie dollar last night, but there’s been a bit of a recovery with volatility remaining quite low.’’
Markets had hoped the ECB would announce specific measures to respond to the region’s debt crisis but there was no immediate action.
Global factors would continue to be focus of the Australian dollar, with major US job figures due on Friday evening, Australian time.
Mr Capurso said the local currency could rise further if US non-farm payroll figures overnight were better expected.‘‘I think at this stage the non-farm payrolls could be a bit weaker.
‘‘It will probably lead to the US dollar selling off and that would help the Aussie dollar to rise a bit further, probably comfortably over 105.’’