InvestSMART

Aust dollar lifts at noon

Local currency holds above 90 US cents, still boosted by poor US jobs data.
By · 14 Jan 2014
By ·
14 Jan 2014
comments Comments
Upsell Banner

The Australian dollar remains above 90 US cents as it continues to gain strength from weaker-than-expected United States jobs data.

At 1200 AEDT, the Australian dollar was trading at 90.35 US cents, up from 90.28 cents yesterday.

The US non-farm payrolls report, released on Saturday morning, Australian time, showed that employers added 74,000 jobs in December, less than half the 197,000 jobs analysts had expected.

The disappointing figures had seen the Australian dollar rally against a weaker greenback, CMC Markets sales trader William Leys said.

"Despite traditionally being a 'risk-on' currency, the Australian dollar has more recently benefited from the market's unease," Mr Leys said.

"(The Australian dollar's) advances against the US dollar are simply a reflection of the foreign exchange markets pricing in the chance of a taper delay, which would naturally weaken the greenback," he said, referring to the Federal Reserve's scaling back of its economic stimulus measures.

Australian bond futures prices were also higher.

At 1200 AEDT, the March 2014 10-year bond futures contract was trading at 95.875 (implying a yield of 4.125%), up from 95.820 (4.180%) on Monday.

The March 2014 three-year bond futures contract was at 97.010 (2.990%), up from 96.970 (3.030%).

Share this article and show your support
Free Membership
Free Membership
AAP
AAP
Keep on reading more articles from AAP. See more articles
Join the conversation
Join the conversation...
There are comments posted so far. Join the conversation, please login or Sign up.