$A higher despite ECB disappointment
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The Australian dollar is higher despite market disappointment following a meeting of the European Central Bank.
At 1700 AEST on Friday, the local unit was trading at 104.95 US cents, up from 104.77 cents on Thursday.
Since 0700 AEST, the local unit traded between 104.46 US cents and 104.86 cents.
Commonwealth Bank currency strategist Joseph Capurso said it was unclear what was driving the Australian dollar.
However, he said there had been a recovery in the local currency since an indecisive outcome of the European Central Bank (ECB) meeting overnight Australian time.
"There's no news that's pushed the Aussie dollar around. There's no clear reason since that ECB announcement," he said.
"It was a very sharp fall in the Aussie dollar last night, but there's been a bit of a recovery with volatility remaining quite low."
Markets had hoped the ECB would announce specific measures to respond to the region's debt crisis but there was no immediate action.
Global factors would continue to be the focus of the Australian dollar, with major US job figures due on Friday evening, Australian time.
Mr Capurso said the local currency could rise further if US non-farm payroll figures overnight were better expected.
"I think at this stage the non-farm payrolls could be a bit weaker."
At 1700 AEST, the Australian dollar was at 82.10 Japanese yen, down from Thursday's close of 82.21 yen, and at 86.06 euro cents, up from 85.58 euro cents.
Meanwhile, Australian bond futures prices are slightly higher.
At 1630 AEST on Friday, the September 10-year bond futures contract was trading at 96.975 (implying a yield of 3.025 per cent), up from 96.940 (3.060 per cent) on Thursday.
The September three-year bond futures contract was at 97.450 (2.550 per cent), up from 97.390 (2.610 per cent).
Deutsche Bank bond trader Andrew Bryan said bond prices had strengthened after the ECB meeting.
"The meeting was disappointing, as you can see from the market reaction, but the movement's haven't been particularly big," he said.
Caroline Smith and Rashida Yosufzai.