Australian dollar regains its strength

THE Australian dollar has recovered after slumping on volatile local employment figures.

The Australian dollar has recovered after slumping on employment figures. Source: Getty Images

THE Australian dollar has recovered after slumping on volatile local employment figures.

At 0700 AEST on Friday, the currency was trading at 73.46 US cents, up from 73.30 cents on Thursday.

Westpac chief currency strategist in New York Richard Franulovich said the Aussie hadn’t had much of a pulse, trading in a tight band overnight.

On Thursday, the currency had a quick spike on local employment figures which showed the total number of people with jobs rose 38,500 in July, after a rise of 7,000 in June.

“But once the market realised the detail was very lopsided — it was all one state, it was all female and the unemployment rate ticked up — that spike was quickly undone,” he said.

Mr Franulovich said there was a lot of event risk in the next 24 hours, with the Reserve Bank’s statement of monetary policy, home lending data and then US non-farm payrolls employment figures due out on Friday night.

“I think the Aussie dollar will probably trade 73.10 to 73.60 (US cents) for the day,” he said.

CURRENCY SNAPSHOT AT 0700 AEST ON FRIDAY

One Australian dollar buys:

* 73.46 US cents, from 73.30 cents on Thursday

* 91.61 Japanese yen, from 91.50 yen

* 67.23 euro cents, from 67.16 euro cents

* 112.08 New Zealand cents, from 112.05 NZ cents

* 47.35 British pence, from 46.90 pence

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

Source: IRESS