The RBA put pressure on AUD/USD after it lowered its 2014 growth forecast from a range of 2.5%-3.5% to 2%-3%. The central bank also warned that the decline in the mining sector might be greater than originally estimated, and of course the natural resources sector is a major source of employment and wealth. There is no suggestion of additional rate cuts, but at the same time the RBA has not ruled out further reductions. As Stan Shamu noted, a strong Australian dollar will hurt exports.
At 1.30pm (London time), the US will release the much-anticipated unemployment report and non-farm payrolls report, widely regarded as the most important announcement of the month. Analysts are expecting the unemployment rate to increase to 7.3% from 7.2% and 120,000 new jobs to have been added in October. The US central bank is operating an $85 billion-dollar-per-month stimulus package, and a strong set of employment data could trigger tapering fears. This might push the Australian dollar towards the $0.94 mark.