Not sure which way the dollar is heading? Why not speak to your OzForex dealer about protecting your foreign exchange payments or receipts using our Currency Options solution.

Australian Dollar: It was a volatile session for the Aussie yesterday after local jobs data came in stronger than expected. Australia’s unemployment rate fell from a 10-month high to 5.2 per cent in September with 20,400 positions added. The Aussie rallied sharply on the news briefly hitting 1.0230 before settling beneath US102 cents for the remainder of the Asian time zone. Investors viewed the data as diminishing the prospect of a cut in official interest rates. In offshore trade, the risk rally eased somewhat which saw the Aussie move to a low of 1.0100 ahead of this morning’s opening level of 1.0180.
 
New Zealand Dollar: The kiwi failed to add to its recent gains after NZ manufacturing expanded less than expected for a fourth consecutive month in September. During local trade on Thursday, the currency ran into resistance around 0.7950 after the BNZ-BusinessNZ Performance of Manufacturing Index (PMI) came in at 50.8. As this data is an early indicator of activity levels, the lower figure took some of the heat out of the recent risk rally. During overnight action, the kiwi moved to a low of 0.7885 ahead of this morning’s opening level of 0.7930. Meanwhile, the kiwi has been outperformed by its trans-Tasman rival opening today at 0.7800 against the Aussie.
 
Great Britain Pound: Despite an increase in the unemployment rate (8.1% from 7.9%) the Pound continued to track higher against the Greenback during yesterday’s Asian session as politicians and policy makers alike continue to voice concerns about UK growth and the potential impact of European debt crisis spilling across the English Channel. The Pound has rallied almost 1.5% (low 1.5550 high 1.5796) against the US dollar in the space of the last several days and appears to have some momentum behind it to possibly re test the 1.60 handle. News out of the UK overnight showed that the trade balance shrank to GBP7.7 billion pounds from the previous reading of negative GBP8.9 billion pounds. The news saw Cable move to an overnight high of 1.5780.  Against the Australian and New Zealand Dollar, the Pound is currently trading at 1.5450 and 1.9825.
 
Majors: The Euro (1.3780) opens steady today against the greenback after the European Central Bank warned the involvement of private banks in bailouts would risk financial stability. Banking stocks in Europe slumped taking its toll on the Euro. Earlier in the session, the 17-nation currency was trading near 5-week highs at 1.3825 after lawmakers in Slovakia voted in favour of supporting the European Financial Stability Facility having failed to approve the measures earlier in the week. Meanwhile, weaker-than-expected September trade data announced in China yesterday took the wind out of the sails of commodity currencies spurring demand for the Japanese Yen which has strengthened against the greenback (76.80).
 
Data releases
 
AUD: No data today
NZD: No data today
JPY:  No data today
GBP: No data today
EUR: Euro zone CPI, Sept
USD: Retail Sales, Sept; Uni of Michigan confidence, Oct