In a decidedly quiet session given the Thanksgiving holiday in the United States, currency market participants remained focused on Europe for guidance. German GDP recorded 0.5 percent growth in the third quarter - matching economist estimates. The German IFO series for November came in better than anticipated with business climate, current assessment and economic expectations rising above estimates.
UK preliminary GDP was unrevised for the third quarter to record 0.5 percent growth, representing 0.5 percent growth on year. European equities finished flat to lower with the FTSE and DAX losing 0.24 and 0.54 percent respectively while France's CAC index finished flat on the day.
The Aussie dollar was able to pare domestic session weakness with price action stabilising above 97-figure. The local unit also outperformed its major peers mustering some strength against its commodity counterparts and stronger against the Euro and Sterling.
We're expecting a reasonably quiet day with the local unit likely to be governed by local and regional equity markets. Technical suggest mild support for the Aussie around 97 US cents, however these levels are hardly impenetrable given the drain in liquidity across currencies - illiquid market conditions have tendency to exacerbate volatility given any unforeseen market moving themes. A move below 97-figure is likely to be contained around 96.6 US cents in domestic trade.
To look at the bright side, market participants may gain some inspiration ahead of the Black Friday sales in U.S which is expected to draw a record attendance. Black Friday marks the unofficial start of the Christmas season and sets the tone for holiday spending.
At the time of writing the Aussie dollar is buying 97.25 US cents.