It was looking like another bout of risk aversion to dictate global market activity on Friday; however optimism prevailed with the greenback posting mixed results against major counterparts as US equity markets turned a blind eye to the highest unemployment rate in 26 years. US nonfarm payrolls declined by 190,000 in October, surpassing the fall in 175,000 expected taking the unemployment rate to 10.2 percent from 9.8 percent in September. The ensuing minutes after the release saw a surge in the US dollar across the board; however momentum couldn't be sustained coinciding with an equity market rally which saw the DOW return above the physiological 10,000 level. Canada's unemployment rate also edged higher after employment figures showed a surprise drop of 43,000 in October; against a consensus of a 10,300 rise, bringing the unemployment rate to 8.6 percent from 8.4 percent in September.
The window of opportunity for Aussie dollar strength is still well and truly open, with interest rate activity in the States a prime consideration for movements on the Aussie Dollar. Traders are balancing the fed's stance on interest rates going forward, in conjunction with local conditions which suggest an economy of strength. Last week saw the Fed reaffirm its commitment to keep exceptionally low levels for an extended period amidst an economy which continues to show positive signs of growth. The premise of continued interest rate rises in Australia extends the window of opportunity for Aussie strength, as carry trade plays become more attractive and investors find the confidence to move into dollar denominated assets such as crude oil and Gold, evident in the latest surge of Gold which hit highs of US$1098 an ounce in Friday's session.
At the time of writing the Aussie Dollar has continued Friday's momentum currently buying US$.9215. Local economic releases today include ANZ Job Advertisements for October and Home Loan data for September which is expected to grow 3.1 percent from a 0.6 percent decline in August.