Forex - Aussie dollar gains after monetary statement repeats stability

Investing.com - The Australian dollar shrugged off weaker construction growth and welcomed rose after the central bank repeated that monetary policy will remain stable for a period of time.

AUD/USD traded at 0.8560, up 0.04%, while USD/JPY moved to 115.22, udown 0.01%. EUR/USD traded at 1.2379, up 0.06%.

The Reserve Bank of Australia Friday said current monetary policy is "very accommodative" because lower interest rates are supported by a recent decline in the currency.

Still, based on current indications, the RBA repeated its guidance that the "most prudent course is likely to be a period of stability in interest rates."

Ahead of the statement, AiGroup's construction index fell 5.7 points to 53.4., still in the expansion zone, but weaker than expected.

Overnight, a double shot of better-than-expected U.S. jobless claims numbers and dovish comments from European Central Bank President Mario Draghi strengthened the dollar against of its peers on Thursday.

Draghi said earlier that the ECB would soon begin purchasing asset-backed securities to prop up the economy.

The program will run for two years and have a “sizeable impact” on the ECB’s balance sheet, Draghi said.

He added that the governing council is unanimously committed to taking further “timely measures” if needed, which sent the euro dropping.

The ECB’s current stimulus program includes purchases of asset-backed securities and covered bonds, though markets are keeping a close eye out for plans to announce purchases of government debt, known as quantitative easing.

The ECB left rates on hold at record lows at its policy meeting earlier Thursday, as widely expected.

Meanwhile across the Atlantic, the dollar found support after the number of people who filed for unemployment assistance in the U.S. last week fell more than expected, fueling optimism over the strength of the labor market, official data showed on Thursday.

The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending Nov. 1 decreased by 10,000 to 278,000 from the previous week’s revised total of 288,000.

Analysts had expected jobless claims to fall by 3,000 to 285,000 last week.

The number of Americans applying for new jobless benefits held below 300,000 for the eighth consecutive week, a sign that recovery in the labor market may be gaining momentum.

The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.02% at 88.20.

On Friday, expect the dollar to track the U.S. October jobs report.