Australian dollar at three-week high

THE Australian dollar has hit a three-week high after Friday’s US non-farm payrolls employment report was a little weaker than expected.

Australian dollar coins on a dark reflective background. Picture: iStock

THE Australian dollar has hit a three-week high after Friday’s US non-farm payrolls employment report was a little weaker than expected.

At 0700 AEST on Monday, the currency was trading at 74.13 US cents, up from 73.78 cents on Friday.

Early on Monday morning, it peaked at 74.20 US cents, its highest level since July 17.

There were 215,000 jobs added to the US economy in July, which was below the gain of 229,000 economists had expected.

That kept the US unemployment rate steady at a seven-year low of 5.3 per cent.

BK Asset Management managing director Kathy Lien said that while the US’ July jobs growth is still strong enough for the Federal Reserve to raise its interest rate in September, many in the market were hoping for a stronger result.

“If the Federal Reserve was looking for some improvement in the labour market, the release certainly met those expectations and yet the US dollar lost value against most of the major currencies,” she said.

“Not only does the report leave September lift-off on the table but we believe it hardens the case for tightening at the next monetary policy meeting.” Ms Lien said the Australian dollar was also higher because of decreasing expectations that the Reserve Bank will cut the cash rate again.

In its Statement on Monetary Policy on Friday the RBA gave an upbeat assessment of the local economy and said the unemployment had already peaked.

CURRENCY SNAPSHOT AT 0700 AEST ON MONDAY

One Australian dollar buys:

* 74.13 US cents, from 73.78 cents on Friday

* 92.06 Japanese yen, from 92.04 yen

* 67.63 euro cents, from 67.54 euro cents

* 112.08 New Zealand cents, from 112.38 NZ cents

* 47.86 British pence, from 47.59 pence

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

Source: IRESS