Dollar lower ahead of US jobs data

THE dollar was weaker at noon today as cautious investors await key US jobs data tonight (AEDT).

THE dollar was weaker at noon today as cautious investors await key US jobs data tonight (AEDT).

At midday (AEDT) today, the local unit was trading at US101.20c, down from US101.70c yesterday.

Since 5pm yesterday, the dollar traded between US101.89c and US101.23c.

CMC Markets foreign exchange dealer Tim Waterer there was little action on the local currency market as traders wait for key US employment data tonight.

"It looks like quite a few traders are in wait-and-see mode," he said.

"They're taking the path of least resistance ... and that's seen the Aussie come down."

Tonight, the US Department of Labour Statistics is expected to release its non-farm payrolls data for February, the official measure of employment in the US.

The current jobless rate is 9.1 per cent, the Department's January figures show.

Market optimism increased ahead of the release after it was shown applications for unemployment benefits fell by 20,000 to a seasonally adjusted 368,000, the third decline in the past four weeks, the US Labor Department said.

It was the third decline in the past four weeks and applications are now at their lowest level since May 2008.

Mr Waterer also said the mood on global markets had been subdued as investors assess the meaning of rising oil prices for global interest rates.

The ongoing political crisis in the world's 15th largest oil producer, Libya, saw oil prices soar above $100 a barrel earlier this week.

Meanwhile, the bond market was weaker.

At noon on the ASX 24, the March 10-year bond futures contract price was 94.405 (implying a yield of 5.595 per cent), down from yesterday's close of 94.470 (5.030 per cent).

The March three-year bond futures contract price was 94.830 (5.150 per cent), down from 94.880 (5.120 per cent).