The Australian dollar

The Australian dollar, sensitive to the ebb and flow in risk appetite and fluctuations in commodity prices, was up 0.2 percent at $0.7022 after touching a nine-day high of $0.7046 on Friday.

Crude, recently under pressure from a global glut, jumped as harsh winter weather on the U.S. East coast boosted demand for heating oil. U.S. crude climbed 9 percent and Brent bounced 10 percent on Friday.

U.S. crude was last up 0.9 percent at $32.49 a barrel. The contracts had descended to as low as $26.19 last week, their lowest since May 2003. Brent crude rose 1.3 percent to $32.59 a barrel after dropping on Wednesday to $27.10, lowest since November 2003.

Recently battered oil-linked currencies enjoyed a boon on crude's sharp rebound. The Canadian dollar traded near an 11-day high of C$1.4115 per dollar hit on Friday, having jumped from a 13-year low of C$1.4689 reached earlier last week.

Australian market set to open higher

THE Australian market looks set to open higher, following gains of around one per cent on Wall Street. At 0649 AEDT on Thursday, the March share price index futures contract was up 64 points at 5,162.

US stocks are higher for a third consecutive session, led by strength in energy stocks, as a bounce in oil prices boosts confidence ahead of the Christmas holiday.

In Australia, the market on Wednesday closed higher for the sixth straight session, following a stabilisation in commodity prices.

The benchmark S&P/ASX200 index was up 25.1 points, or 0.49 per cent, at 5,141.8 points.

The broader All Ordinaries index was up 25.8 points, or 0.5 per cent, at 5,193.5 points.

Dollar slips vs yen after BOJ stimulus disappoints

The dollar slipped against the yen on Friday after a set of stimulus measures the Bank of Japan unveiled were deemed too modest to drive the greenback higher.

The BOJ on Friday said after its policy meeting that it would expand the types of assets it purchases, sending the dollar briefly soaring versus the yen.

The dollar initially rose to 123.59 JPY= after the BOJ announcement, but was last down 0.5 percent at 121.895 yen.

The BOJ decided to set aside 300 billion yen to buy exchange-traded funds (ETFs) that specifically target shares of companies actively pursuing capital expenditure. It will also extend the maturity of JGBs it buys to 12 years from 10 years next year.

The U.S. dollar index .DXY slipped 0.4 percent to 98.910 after hitting 99.294 overnight, its highest in two weeks. The index posted a 1.2 percent gain on Thursday - its biggest rise in over a month. The greenback advanced broadly after the Fed on Wednesday lifted its benchmark rate off zero.

The euro was up 0.2 percent at $1.0850 EUR=, pulling away from a 10-day low of $1.0802 hit overnight.

The Canadian dollar was now close to a 12-year low, having come within a whisker of C$1.40 per USD CAD=D4.

The Australian dollar briefly dipped below 71 U.S. cents AUD=D4 for the first time in a month, before edging back to $0.7138. Its New Zealand counterpart fell to its lowest in over a week at $0.6680 NZD=D4.

Australian dollar falls below 71 US cents

One Australian dollar buys

* 70.92 US cents, from 71.14 cents on Monday

* 87.42 Japanese yen, from 87.08 yen

* 66.42 euro cents, from 66.33 euro cents

* 109.19 New Zealand cents, from 108.86 NZ cents

* 46.67 British pence, from 46.76 pence

Australian Stock Market News - Australia's Central Bank

Dollar treads water, Aussie edges up after RBA stands pat

The dollar, euro and yen treaded water on Tuesday in Asia, as the market was quiet with Tokyo on holiday and traders awaiting direction after the latest readings on global manufacturing activity failed to show clear economic trends.

In Asia, the Australian dollar was the biggest mover in an otherwise sedate session, rising after the Reserve Bank of Australia (RBA) left interest rates unchanged.

Australia's central bank kept its cash rate steady at a record low of 2.0 percent on Tuesday as widely expected, but said low inflation offered scope to ease further if needed.

While the question still appeared to be when and not if the RBA could cut rates in the near future, commentators suggested that the Aussie moved more on factors other than monetary policy.

"The recent track record suggests policy expectations have not been the dominant driver," wrote Todd Elmer, head of Citi's G10 strategy in Singapore. "AUD has actually gained as interest rate expectations have declined sharply, at least partly reflecting gains on the basis of rising risk appetite."

The Aussie was up 0.8 percent at $0.7200 AUD=D4. It touched a 6-1/2-year low of $0.6892 early in September when risk appetite globally was at a low ebb amid China worries. But the currency rebounded to as high as $0.7382 in mid-October as appetites improved.

The dollar index .DXY was barely changed at 96.907 after drifting between 96.635 and 96.965 all of Monday. The euro EUR= was hemmed in a tight $1.1000 to $1.1053 range and last stood at $1.1012.

Against the yen, the greenback was equally restrained, trading nearly flat at 120.73 JPY=, while the euro was steady at 133.94 yen EURJPY=R.

U.S. Stock Markets News - Dollar Bounces

Dollar steadies vs yen as Japan budget report lifts risk appetite

The dollar bounced against the yen on Friday, as a report that Japan may unveil a supplementary budget lifted risk appetite and helped the greenback pare earlier losses.

The U.S. currency had earlier dipped to as low as 120.29 after the Bank of Japan stood pat on monetary policy, disappointing some speculators who had bet that the central bank would expand its already massive stimulus.

The greenback received a reprieve, however as Tokyo stocks pulled out of the red following a report by the Nikkei newspaper that Japan's government is considering compiling a 3 trillion yen ($24.77 billion) extra budget in preparation for the trans-Pacific trade pact.

The safe-haven yen often moves in inverse correlation with Japanese stocks, falling when investor risk appetite improves.

All the same, the dollar was capped by caution ahead of BOJ Governor Haruhiko Kuroda's press conference at 0630 GMT when he is set to elaborate on the central bank's decision.

The data helped the common currency bounce from a 2-1/2-month low of $1.0896 struck midweek following the Federal Reserve's hawkish stance.

The Australian dollar nudged up on bargain hunting but remained shaky after taking hits earlier in the week on the back of the Fed's statement and rising risks of a rate cut at home.

The Aussie was up 0.3 percent at $0.7097 AUD=D4 but remained within an arm's length of a 3-week low of $0.7067.

Australian Stock Market News - US Federal Reserve

Dollar nosedives as Fed leaves rates on hold

THE Australian dollar has broken below 71 US cents after the US Federal Reserve kept its near-zero benchmark interest rate unchanged.

At 0630 AEDT on Thursday, the currency was trading at 71 US cents, down from 71.20 cents on Wednesday.

While leaving policy steady on Thursday morning (AEDT), the central bank hinted it could begin raising US interest rates as early as December.

The Aussie slumped to 70.80 US cents with the news, from 71.59 earlier.

CURRENCY SNAPSHOT AT 0630 AEDT ON THURSDAY

One Australian dollar buys:

* 71.00 US cents, from 71.20 cents on Wednesday

* 86.03 Japanese yen, from 85.72 yen

* 65.02 euro cents, from 64.53 euro cents