Dollar higher after US super storm

DOLLAR higher, but with little movement, as US super storm produces a partial shutting down of New York markets.

THE dollar is higher, but with little movement, as a super storm on the US east coast produces a partial shutting down of New York markets.

At 12pm AEDT today, the dollar was was trading at 103.87 US cents, up from 103.43 cents yesterday.

RBC currency strategist Michael Turner said a lack of liquidity in the market had produced sluggish trading.

"We've barely moved since this morning," he said. "There was a rally in the Aussie last night, broadly in line with moves in the euro."
 
"European stocks were higher, but the US was out, meaning there wasn't a lot of liquidity."

Spain's gross domestic product (GDP) data released overnight, showed a contraction of 3.0 per cent in the country's economy in September - less than the expected 4.0 per cent fall. This provided a boost for the euro currency.

Domestic building approvals data released today lifted the Aussie dollar slightly. Approvals for residential dwellings in Australia rose 7.8 per cent in September, with the growth concentrated in multi-unit dwellings.

Mr Turner said the market would have little else to move on ahead of Chinese manufacturing data due tomorrow, and US employment numbers on Friday.

"It looks like it's going to be a quiet session tonight," he said.

Meanwhile, Australian bond futures prices were lower at noon. At 12pm AEDT today, the December 10-year bond futures contract was trading at 96.930 (implying a yield of 3.070 per cent), down from 96.945 (3.055 per cent). The December three-year bond futures contract was at 97.440 (2.560 per cent), down from 97.480 (2.520 per cent).