The Australian dollar opened lower on Friday, as investors expectations of a recovery in the American economy were dampened after the US unemployment rate hit a 26-year high.

At 0700 AEST, the local currency was trading at $US0.7936/41, down 1.11 per cent from Thursday's close of $US0.8027/29.

During the offshore session, the unit moved between $US0.7935 and $US0.8048 in early London trade.

Investors sentiment to risk fell following job reports in the US and Europe discourage hopes of a recovery in the recessionary economies.

The US economy shed 467,000 jobs in June to a 26-year high of 9.5 per cent in June following a downwardly revised loss of 322,000 jobs the month before, the US Department of Labour said.

June's result was more than market forecasts of a loss of 365,000 jobs in June, but below expectations for a 9.6 per cent unemployment rate.

The US jobless rate was 9.4 per cent in May.

Since the US recession began in December 2007, the world's biggest economy has lost 6.5 million jobs and the unemployment rate has risen 4.6 percentage points.

The unemployment rate in the 16-nation eurozone rose to a 10-year high of 9.5 per cent in May, European Union's Eurostat data agency reported on Thursday.

Some 273,000 jobs were lost across the eurozone in May as the unemployment rate rose to the highest point since May 1999.

Wall Street ended weaker, with the Dow Jones Industrial Average closing down 2.63 per cent and the Standard & Poor's 500 index was 2.91 per cent lower.

ANZ Banking Group senior markets trader, Alex Sinton, said commodity-based currencies such as the Australian and New Zealand dollars had been hit by the jobs data.

"The non-farm payrolls data in the US was not spectacular, and we now have a tie for first place between Europe and the US with the unemployment number," Mr Sinton said from Auckland.

"At 9.5 per cent, the US is at a 26-year high and Europe is at a 10-year high.

"You would have to assume it is not good for our currencies."

Local economic data scheduled for release on Friday include the Australian Industry Group/Commonwealth Bank Australian Performance of Services Index (Australian PSI) for June.

Mr Sinton forecasts the Australian dollar to move between $US0.7930 and $US0.7980 in quiet trade during Friday's local session ahead of the Independence Day public holiday in the US.