The Australian dollar is staying in a tight range as traders sit on the sidelines keenly awaiting the release of official US employment figures for December.
At 1200 AEDT on Friday, the local unit was trading at 88.77 US cents, up from 88.69 cents on Thursday.
During the morning, the currency stayed in a range between 88.83 US cents and 89.04 cents.
National Australia Bank currency strategist Emma Lawson said the upcoming US non-farm payrolls data, out in the early hours of Saturday, Australian time, are overshadowing all other drivers for currency markets.
"The European Central Bank's heightened cautious tone was the main news overnight, but with the US payrolls now featuring as such an important guide, markets were relatively tightly bound ahead of tonight's release," she said.
"The underperforming currencies were the commodity currencies, as copper and oil were lower."
The US employment numbers are considered crucial to decisions to be made at the US Federal Reserve's next policy meeting on January 28-29.
The Fed is expected to decide on how much further it will scale back its massive economic stimulus program, and a good jobs data will cement expectation of more tapering.
"Initial indicators suggest the risks to the outcome are for a higher-than-expected number," Ms Lawson said.
Meanwhile, Australian bond futures prices were firmer at noon.
At 1200 AEDT on Friday, the March 2014 10-year bond futures contract was trading at 95.780 (implying a yield of 4.220 per cent), up from 95.730 (4.270 per cent) on Thursday.
The March 2014 three-year bond futures contract was at 96.920 (3.080 per cent), up from 96.900 (3.100 per cent).