Investing.com - The Aussie drifted in a narrow range in a light Asian data day on Friday awaiting the expected release of industrial output and retail sales data from China to set the tone.
AUD/USD traded at 0.7454, flat, while USD/JPY changed hands at 113.06, down 0.12%. EUR/USD was quoted at 1.1172, down 0.05%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 96.19, down 1.03%.
Overnight, the dollar turned broadly lower against the other major currencies on Thursday, erasing a more than 1% rally after European Central Bank President Mario Draghi said interest rates aren’t likely to be cut again.
The euro initially weakened after the ECB cut interest rates across the euro zone to new record lows and boosted its quantitative easing program.
The ECB wrong footed markets by cutting its benchmark interest rate to a record-low of zero from 0.05%. Market watchers had been expecting no change.
The central bank also cut the deposit facility rate deeper into negative territory, to minus 0.4% and cut the marginal lending rate cut to 0.25% from 0.30%.
In addition, the ECB boosted its quantitative easing program by €20 billion per month to €80 billion, starting in April.
The bank also said investment grade euro-denominated bonds would become eligible for purchases under its asset purchase program.
But the euro rebounded after Draghi said the ECB did not anticipate that it will be necessary to reduce interest rates further, but added that this could change.
In the U.S., the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending March 5 decreased by 18,000 to 259,000 from the previous week’s total of 277,000.
Analysts expected jobless claims to fall by 2,000 to 275,000 last week.