Aust dollar higher ahead of US data

The Australian dollar is a touch higher as traders prepare for key US employment data.

At 5pm (AEDT) on Friday, the currency was trading at US73.30 cents, up from US73.20c on Thursday.

Commonwealth Bank currency strategist Joe Capurso said the local unit had lost some ground after the European Central Bank disappointed financial markets with a small cut to the deposit interest rate.

“The Aussie might go under US70 cents tonight with the US payrolls,” Mr Capurso said.

“The payrolls are likely to be stronger than consensus and that’ll push the US up and the Aussie down.”

At the ECB’s last monetary policy meeting of the year, on Thursday, the governing council decided that the key deposit rate would be lowered by a further 0.10 of a percentage point, in order to help stimulate Europe’s troubled economy.

Traders are now waiting for the release of US non-farm payrolls employment report for November on Friday night.

http://www.businessspectator.com.au/

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