Dollar higher ahead of crucial US data

THE Australian dollar is higher ahead of the release of crucial monthly job figures from the US.

money currency

THE Australian dollar is higher ahead of the release of crucial monthly job figures from the US.

At 12.00 AEST on Friday, the currency was trading at 102.62 US cents, up from 102.34 US cents on Thursday.

IG Markets institutional trader Chris Weston said non-farm payrolls figures due on Friday night would be an important event for the Aussie dollar and global sentiment.

"The data and its significance could be very interesting," he said.

"You would think that a strong number would be good for the Aussie dollar, but what will happen on a weak number is less clear cut.

"In theory, it should see the Aussie trade lower, but the implications for future monetary policy and the political situation will also be important to watch."

Mr Weston said a weak non-farm payrolls number (less than 100,000 jobs added during September) could boost Mitt Romney's chances at the presidential election in November.

"He's been very critical of the FOMC (Federal Open Market Committee)'s easy money policy," he said.

Meanwhile, bond prices were lower at noon.

The December 10-year bond futures contract was trading at 97.050 (implying a yield of 2.950 per cent), down from 97.115 (2.885 per cent).

The December three-year bond futures contract was at 97.610 (2.390 per cent), down from 97.670 (2.330 per cent).