Dollar steady at noon ahead of US jobs data

THE dollar was fractionally higher at noon (AEST), as traders await significant US employment figures due on tonight.

THE dollar was fractionally higher at noon (AEST), as traders await significant US employment figures due on tonight.

At midday, the dollar was trading at US107.26c, up from US107.20c yesterday.

Since 7am, the local unit traded between US107.12c and US107.34c.

The dollar is closing in on its sixth straight positive session, having gained almost 2c since August 25.

CMC Markets senior FX dealer Tim Waterer said the Australian dollar was trading in a very narrow range today, ahead of significant US non-farm payrolls figures due in the offshore session.

"Risk assets will either get the green light or the red light when US non-farm payrolls are released," Mr Waterer said.

"A print of sub-fifty thousand jobs would definitely put the heat on higher yielding currencies, which would be sold off in favour of the Yen and Swiss Franc," he said.

Mr Waterer said the dollar could hit US108c by the weekend, if the US payrolls result fuelled risk sentiment.

The dollar was likely to trade in a range of US106.75c to US107.65c today, he added.

"In the lead-up to the jobs figures, narrow ranges are expected as traders do not want to be caught on the wrong side of any potential large swings tonight."

Meanwhile, the bond market was stronger at noon.

The September 10-year bond futures contract was trading at 95.590 (implying a yield of 4.410 per cent), up from 95.570 (implying a yield of 4.430 per cent).

The September three-year bond futures contract was at 96.140 (3.860 per cent), up from 96.090 (3.910 per cent).