The AUD/USD pair dropped for the second day as the US dollar was able to cover most of its previous losses against other majors, which supported the greenback to end the Aussie upside movements.
The EU debt crisis appeared in the picture once again asFrancewill sell its bonds, and expectations indicate that the banks and the governmental institutions will fail to raise funds.
On the other hand, theU.S.economy witnessed a strong Factory Orders during November, while the cheerful reading could not face the risk aversion wave which hit the market beforeFrancesells its bonds.
On Friday at 22:30 GMT (Thursday),Australia will release the AiG Performance of Construction Index for December, where the previous reading was 39.6.
TheUnited States of Americawill issue a number of economic data on Friday, starting with the non-farm payrolls at 13:30 GMT, which is expected to show that theU.S.economy has added 150 thousand jobs during the month of December compared with the previous reading of 120 thousand jobs.
Unemployment rate during the month of December is expected to increase to 8.7% from the prior of 8.6%, while the yearly average hourly earnings index is expected to advance by 2.1% from the previous reading of1.8%.
Any improvement in new jobs in the United States could drive the dollar to raise more against the Japanese yen, as it reflect the strongest recovery in employment sector and the U.S. economy as whole.
Originally posted here
