Forex - Aussie flat ahead of monetary statement, dollar up vs yen

Investing.com - The Australian dollar held steady ahead of a central bank review of monetary policy, while the dollar retained gains against the yen.

AUD/USD traded at 0.8556, flat against the dollar, while USD/JPY held at 115.35, up 0.10%. EUR/USD traded at 1.2373, up 0.01%.

The Reserve Bank of Australia releases the latest statement of monetary policy at 1130 Sydney time (0030 GMT) with commentary on the economy overall and especially on the housing market in focus.

Before that, the AiGroup's construction index is due at 0930 (2230 GMT). That is expected to show the index remained firmly in the expansion zone in October.

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, was flat at 88.22.

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