The Australian dollar continued its decline against its major rivals in late Asian deals on Friday, as softening commodity prices and the European Central Bank's announcement of quantitative easing program raised expectations that Australia's central bank may further ease interest rates from a record low.

The ECB on Thursday launched quantitative easing program of 1.1 trillion euros, consisting of the purchases of public and private sector securities, which will start in March. Denmark last night lowered its interest rate for the second time this week, to -0.35 percent, to offset the effect of the ECB's QE program.

The Bank of Canada unexpectedly cut its key lending rate to 0.75 percent on Wednesday in reaction plunging oil prices.

Australia's inflation data for the fourth quarter is due next week. Plunging oil prices are expected to weigh on inflation, giving the RBA room to cut rates further.

The Reserve Bank of Australia meets on February 3. Surprise rate cuts from several central banks around the world have arise speculation that the RBA might follow their suit.

The central bank's cash rate is at 2.5 percent.

The aussie hit a 9-day low of 94.66 against the yen, 3-day low of 1.0656 against the kiwi and a 2-day low of 0.9892 against the loonie, compared to yesterday's closing values of 95.08, 1.0694 and 0.9937, respectively. The next key support for the aussie is seen around 92.5 against the yen, 1.05 against the kiwi and 0.975 against the loonie.

The aussie slipped to 0.7983 against the greenback, a level not seen since July 2009. At Thursday's close, the pair was worth 0.8025. If the aussie extends slide, 0.78 is likely seen as its next support level.

The aussie edged down to 1.4203 against the euro, from yesterday's closing value of 1.4158. Continuation of the aussie's downtrend may lead it to a support around the 1.45 zone.

Looking ahead, PMIs from major European economies are due in the European session.

U.S. existing home sales and leading indicators for December and Markit's manufacturing PMI for January, as well as Canada CPI for December and retail sales for November are set for release in the New York session.

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