Australian dollar rises above 78 US cents

THE Australian dollar hit a three week high amid further US dollar weakness and after the release of surprisingly strong local jobs data.

THE Australian dollar hit a three week high amid further US dollar weakness and after the release of surprisingly strong local jobs data.

At 0700 AEST on Friday, the local unit was trading at 78.03 US cents, up from 77.37 cents on Thursday.

Early on Friday morning, it peaked at 78.23 US cents, its highest level since March 27.

BK Asset Management managing director Kathy Lien said the Australian dollar is among the best currency performers this week against the a US dollar that has had a bad few days.

“Everyone from traders to investors continued to sell US dollars, driving the greenback to fresh lows against all of the major currencies,” she said.

Unfortunately more disappointments in US data added pressure on the greenback. Housing starts, building permits and jobless claims all fell short of expectations.” Local data out on Thursday, showed that the total number of people with jobs rose by almost 38,000 in March, more than double the amount that the market expected.

The unemployment rate plunged to 6.1 per cent, which beat expectations of it staying steady at 6.3 per cent.

“Stronger than expected Australian employment numbers and a rebound in iron ore prices catapulted the Australian dollar higher,” Ms Lien said.

“These developments are encouraging but they do not remove the risk that slower Chinese growth has on Australia’s economy.”

CURRENCY SNAPSHOT AT 0700 AEST ON FRIDAY

One Australian dollar buys:

* 78.03 US cents, from 77.37 cents on Thursday

* 92.88 Japanese yen, from 92.36 yen

* 72.51 euro cents, from 72.57 euro cents

* 101.74 New Zealand cents, from 101.87 NZ cents

* 52.25 British pence, from 52.18 pence

(*Currency closes taken at 1700 AEST previous local session)

Source: IRESS

Originally published as Australian dollar rises above 78 US cents