The Aussie dollar rebounded yesterday trading above 75 cents late in the afternoon. The local currency finished the day trading at 0.7520. Overnight markets pushed it even higher to reach 0.7546 were it opened this morning.

Once again EUR/USD trading directed most currency prices in the last 24 hours. The euro bounced back after 5 days of intense selling just after registering an 8 month low against the greenback.

The euro recovery was mirrored by the Aussie dollar comeback reaffirming the currency pairs’ close relationship.

On the local market, Australian Trade Balance figures were released yesterday with the April deficit narrowing from 2.64 billion in March to 1.33 billion April. The result came in well below expectations of 2.2 billion and provided needed support to the AUD.

Traders immediately backed the Aussie although the gains were limited as uncertainty remained over euro weakness. The AUD/USD did not test long term resistance levels at 0.7440-0.7550 providing more optimism of a rebound.

Overnight trade helped the Aussie higher as disappointing data from the US cast a shadow over tonight’s US Non-Farm Payroll figures. Stronger commodity markets also helped the AUD as oil surged back past US54.00 a barrel.

This week has been volatile for the local unit with EUR/SD selling sending it higher against the euro and lower against the greenback. Leading into next week it appears overseas market forces will once again determine the course of the Aussie.

Looking ahead the RBA will meet next Tuesday with May unemployment figures due out on Thursday.