Dollar rangebound ahead of US jobs data

THE Australian dollar closes slightly lower today ahead of the publication of US November employment data.

Australian dollar

THE Australian dollar was slightly lower today after spending the day session in a tight range as the market marked time ahead of the publication of US November employment data.

At 5pm (AEST) the Australian dollar was trading at 102.21 US cents, a touch down from 102.25 cents yesterday.

Since 0700 AEDT today, the local unit traded between 102.09 US cents and 102.45 cents.

The Australian currency was consolidating after surging five US cents during the week, mainly driven by coordinated action on Wednesday night by six central banks to lower the cost of borrowing and provide funds to cash-strapped commercial banks in Europe.

Easy Forex currency dealer Tony Darvall said it was an uneventful day for markets after a dramatic week.

"You tend to get this on a Friday Asian session prior to a non-farm payrolls' release in the US, so as always it's that erie calm before the storm.

"So it does look like the Aussie has been rangebound and trading has been relatively subdued, compared to the last 48 hours," Mr Darvall said.

Today, the US Department of Labour will publish non-farm payrolls for November, which is the key measure of jobs growth

Mr Darvall said the data was likely to be the main driver for markets during the overnight session.

He said the US private employment data released during the week helped improve hopes for Friday night's figures.

"Markets are slightly geared to boosting confidence further and potentially pushing the Aussie (dollar) toward the 103.30 US cents.

The Reserve Bank of Australia's trade weighted index was at 75.7, down from 75.9 yesterday.