Dollar well supported after local data
The Australian dollar is slightly higher, enjoying support following a busy week of economic data releases, most of which were quite good.
The local unit was trading at $US1.0477, up from $US1.0461 on Thursday.
In the early hours of Friday local time, the Australian dollar peaked at 105.17 US cents, its highest level in over two and a half months, helped by a surprise fall in the Australian unemployment rate for November, which was announced on Thursday.
CMC Markets senior trader Tim Waterer said jobs figures and other encouraging economic data earlier in the week has helped the Australian dollar outperform other currencies.
‘‘The Australian dollar has taken on something of a ’dual-threat’ appearance given that it is a popular pick in the foreign exchange market when risk appetite rises ... when risk aversion mounts with the currency still garnering the attention of central banks around the globe.
‘‘Despite the RBA (Reserve Bank of Australia) interest rate cut this week, its high yield relative to other currencies is serving the Australian dollar very well indeed.’’
Mr Waterer said caution about how offshore markets will trade on Friday night probably played a part in the Australian dollar not staying above $US1.05.
He said further analysis of the European Central Bank’s downgrade of economic growth forecasts after its meeting on Thursday could weigh on markets.
The US will release its November employment data on Friday night which could also be a negative.
‘‘However the report may not hold as much weight as usual given that a low result will likely be attributed to Hurricane Sandy,’’ Mr Waterer said.