Australian dollar lower after US jobs data

THE dollar was slightly weaker today after an unexpected drop in the US unemployment rate sent investors into the US dollar.

THE dollar was slightly weaker today after an unexpected drop in the US unemployment rate sent investors into the US dollar.

At 7am (AEDT), the local unit was trading at 101.21 US cents, down from 101.84 cents on Friday.

Since 5pm (AEDT) on Friday, the local dollar traded between 102.00 US cents and 101.11 cents.

Bank of New Zealand currency strategist Mike Jones said the unit was weaker following better than expected US employment data, which sent investors into the US dollar.

"It was a tumultuous 24 hours for the Aussie," Mr Jones said.

"It was boosted by a relatively upbeat statement from the Reserve Bank of Australia on Friday, but it hit downwinds late in the US session after a mixed US employment report."

The US unemployment rate fell unexpectedly in January, to 9.0 per cent from 9.4 per cent in December, official data showed on Friday.

It was the second month in a row the rate has fallen 0.4 percentage point. Most economists had expected the US Labor Department to report the jobless rate rose to 9.5 per cent.

The Labor Department, in reporting data incorporating new adjustments, highlighted that the revisions made monthly comparisons difficult.

Mr Jones said risk appetite was generally muted because of the ongoing political instability in Egypt. Egyptian President Hosni Mubarak's regime has held talks with opposition groups, including the Muslim Brotherhood, agreeing to jointly pursue democratic reform.

But the government's chief negotiator, Vice President Omar Suleiman, refused a call for him to assume Mubarak's powers, and it was unclear whether the concessions would satisfy protesters occupying Cairo's Tahrir (Liberation) Square.