Aussie declines as investors avoid risk assets
The Australian dollar opened slightly lower today as investors continued to dodge risk assets after the release of worse than expected US jobs numbers.
At 7am AEST Friday, the local unit was trading at $US0.8961-66, a decline from yesterday's finish of $US0.8977/79.
Since 5pm (AEST) Thursday, the domestic currency ranged from $US0.8915 to $US0.9008.
The local dollar was up slightly from yesterday's finish despite a move away from risk assets overnight, according to Commonwealth Bank vice president of institutional banking and markets Tim Kelleher from Auckland.
"The Aussie held onto its gains."
"It did pop above 90 US cents briefly in London but the US data and the European data was a little bit weaker.
"It was a continuation of the risk-off theme and the data didn't support it either," Mr Kelleher said.
World stock markets plunged Thursday as an unexpected rise in US new jobless claims increased fears over the economy, with the investment community seeking for safety.
Dealers said data showing US jobless claims increasing slightly, rather than declining, topped a gloomy series of numbers which have stoked worries that the economic recovery is in severe difficulty.
An absence of local report today would likely send the dollar track sideways, Mr Kelleher said.
"It should be a quiet one today for the Aussie.
"I'd say there's some pretty good support around the 89 cent area."
He expects the local unit to trade between 89.15 and 90.08 US cents during the domestic session.