The Australian dollar has pushed higher, helped along by continued strength on share markets.
At 1700 AEST on Friday, the currency was at 105.56 US cents, up from 105.21 US cents on Thursday.
OzForex chief currency strategist Jim Vrondas said the local currency continued to rally on Friday, thanks to gains on both the Australian and US stock markets.
“There has been a bit of positive sentiment from equity markets and it looks like that is helping to keep the Aussie dollar buoyed,” he said.
The Australian dollar has risen around two US cents since the start of the week, helped along by stock market gains and Japan’s stimulus package.
That’s despite a brief pullback in the currency on Thursday following news the national unemployment rate had risen to 5.6 per cent in March, its highest level in more than three years.
Mr Vrondas said the Australian dollar could continue rising over the weekend, though it would meet strong resistance around the 106 US cent level.
At 1700 AEST, the Australian dollar was trading at 104.82 Japanese yen, almost unchanged from 104.84 yen on Thursday, and at 80.60 euro cents, up from 80.53 euro cents.
Meanwhile, Australian 10-year bond futures prices are higher on expectations of further interest rate cuts.
ANZ head of interest rate research Tony Morriss said bond futures remained well supported, in part due to the recent rise in the Australian dollar, which has boosted expectations of a further monetary easing.
“I think there has been some support for our market on the basis that our currency has appreciated, which increases the chances of further easing from the RBA,” he said.
The Reserve Bank of Australia has keep the cash rate on hold at three per cent since December 2012, after cutting it by 1.25 percentage points over last calendar year.
At 1630 AEST on Friday, the June 10-year bond futures contract was trading at 96.700 (implying a yield of 3.300 per cent), up from Thursday’s close of 96.685 (3.315 per cent).
The June three-year bond futures contract was unchanged at 97.220 (2.780 per cent).