The Australian dollar is hovering below 94 US cents, having recovered some of the losses it suffered on the back of disappointing jobs figures.
At midday on Friday, the local currency was trading at 93.86 US cents, up from 93.69 cents on Thursday.
The Australian dollar fell on Thursday after labour force figures showed the unemployment rate hit 6.0 per cent in June.
The currency was then further weighed down by disappointing Chinese trade figures and concerns over the health of Portugal’s largest listed bank, Banco Espirito Santo.
But the Australian dollar was recovering and consolidating on Friday, Westpac senior currency strategist Sean Callow said.
“It’s been a quiet day after all the excitement yesterday,” Mr Callow said.
“It had very steep losses from the jobs numbers and the China trade numbers and then another sell-off in the London morning, either on speculation about Reserve Bank of Australia policy or the Portugal worries.
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“With all that, the Aussie fell but sentiment gradually improved during the New York session, nerves started to calm a bit and that helped the Aussie start the day in a less nervous frame of mind and we’re mostly consolidating now.”
Meanwhile, Australian bond futures prices were higher.
The September 2014 10-year bond futures contract was trading at 96.565 (implying a yield of 3.435 per cent), up from 96.525 (3.475 per cent) on Thursday.
The September 2014 three-year bond futures contract was trading at 97.430 (2.570 per cent), up from 97.400 (2.600 per cent).
