The Australian dollar has staged a surprising rebound, courtesy of its weaker US counterpart.
At 1700 AEST on Friday, the local currency was trading at 104.63 US cents, up from 103.74 cents on Thursday.
It was at 81.78 Japanese yen, up from 81.06 yen on Thursday, and 80.58 euro cents, up from 80.06 euro cents.
The local currency regained ground lost on Thursday, when it fell after the release of weaker than expected Chinese manufacturing data.
Easy Forex senior currency dealer Francisco Solar said the rebound could be attributed to weak demand for the US dollar.
"There is every reason for the Aussie to push down further, but it looks like it is being well supported," he said.
"That's because there is a fundamental view at the moment that the US dollar is a very weak currency."
Mr Solar said the Australian dollar was likely to fall back once traders started focusing again on signs of weakness in the Australian and Chinese economies.
Pessimism about the Australian economy has intensified over the past few months due to a sharp fall in iron ore prices amid concern about slowing growth in China.
"Once we see a shift in focus back to this part of the world, we might start to see some significant pull-backs," Mr Solar said.
Mr Solar said he expected the Australian dollar to trade between 103.60 US cents and 105.50 US cents over the weekend.
Meanwhile, Australian bond futures prices fell sharply on Friday.
CMC Markets chief market strategist Michael McCarthy said the fall was surprising, given the lack of major economic news.
He said the low volume of trades during the Australian trading day may have inflated the movements in contract prices.
"We have noticed today across all markets today fairly low volumes and I suspect that's one of the drivers here, today," he said.
Mr McCarthy said investors may also have been taking profits after recent rallies.
At 1630 AEST on Friday, the December 10-year bond futures contract was trading at 96.800 (implying a yield of 3.200 per cent), down from 96.860 (3.140 per cent) on Thursday.
The December three-year bond futures contract was at 97.410 (2.590 per cent), down from 97.500 (2.500 per cent).
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