The Australian dollar closed little changed on Friday, and was stuck in recent trading ranges ahead of next week's central bank board meeting and interest rate decision.
At 1700 AEDT, the Australian dollar was trading at US$0.6455/60, down marginally from Thursday's close of US$0.6476/81.
During the day, the unit moved
between a low of US$0.6438 and a high of US$0.6518 reached just after the local session started at 0700 AEDT.
The Australian dollar opened stronger at US$0.6509/14 at 0700 AEDT, but gradually moved lower through the morning.
The local currency shed a third of a US cent after 1100 AEDT as data showed Japanese industrial production fell by 10 per cent in January, following a 9.8 per cent drop in December.
Japan suffered its biggest monthly drop in manufacturing output since government records began in 1953.
CMC Markets FX dealer Tim Waterer said the unit's moves were limited ahead of the Reserve Bank of Australia's (RBA) board meeting next week.
Mr Waterer said the surprisingly strong capital expenditure data published on Thursday had dampened expectations of a big interest rate cut and continued to provide the Australian dollar some support.
"That's why it's been pretty stable and just ossicilating around that US$0.6450 mark for most of the Asian session today," Mr Waterer said.
"It's in something of a holding pattern at the moment."
Mr Waterer said there was little reaction to figures from the RBA which showed annual growth in private sector credit had fallen to its slowest pace since 1994.
"The main focus is on that important day next Tuesday," Mr Waterer said.
The preliminary estimate of US December quarter gross domestic product (GDP) will be released during Friday night's (AEDT) offshore session.
Market economists expected a downward revision to the advanced estimate, which showed the US economy contracted 3.8 per cent in the December quarter.
Data on US personal consumption and expenditures was also due out, as well as survey of manufacturing activity in the Chicago region.
Mr Waterer said the US dollar would remain well supported while US economic data continued to print weak and Wall Street performed poorly.
"If we see US equities have another night in the red, as it did last night, then it might be difficult to see the Australian dollar break out towards US$0.6500," Mr Waterer said.
CURRENCY TABLE:
CURRENCY SPOT PREVIOUS CLOSE
AUD/USD 0.6455-60 0.6476-81
AUD/JPY 63.03-09 63.33-39
AUD/EUR 0.5065-74 0.5092-99
AUD/NZD 1.2740-67 1.2704-16
AUD/GBP 0.4517-26 0.4548-56
EUR/USD 1.2737-40 1.2715-18
USD/JPY 97.64-66 97.78-80
EUR/JPY 124.38-43 124.33-38
(*Closes taken at 1700 AEDT Previous local session)
At 1600 AEDT, the Reserve Bank of Australia's trade weighted index was at 54.8, down from Thursday's close of 55.2.
- AAP
The Australian dollar closed little changed on Friday, and was stuck in recent trading ranges ahead of next week's central bank board meeting and interest rate decision.
At 1700 AEDT, the Australian dollar was trading at US$0.6455/60, down marginally from Thursday's close of US$0.6476/81.
During the day, the unit moved
AdvertisementAdvertise with NZME.