Dollar over US1c higher on weaker US jobs

THE dollar was higher at midday (AEDT) after gaining ground on Friday night on the back of weak US employment numbers.

THE dollar was higher at midday (AEDT) after gaining ground on Friday night on the back of weak US employment numbers.

The US jobless rate surged to 9.8 per cent in November, its highest level since April, and caused the US dollar to fall against most major currencies.

At midday today, the dollar was trading at US99.02c, up from Friday's close of US97.72c.

Since 5pm on Friday, the local unit traded in a range between US97.67c and US99.39c.

CMC Markets foreign exchange dealer Tim Waterer said the local unit had a good end to the week in the Friday night (AEDT) offshore session.

"When stock indices started reversing some earlier losses, we saw the US dollar come off the boil, which allowed the Aussie dollar and the euro to post some decent gains to end the week," Mr Waterer said.

"That largely masked over some disappointing data out last week in Australia in the GDP (gross domestic product) and retail sales numbers.

"We have a chance to make up for that this week on Thursday with the employment numbers out locally."

Mr Waterer said there's a chance the Australian dollar could reach parity with the US dollar again this week.

"If we see some solid numbers in terms of the unemployment rate, positive jobs growth - that may be enough to get it across the line," he said.

"We've got gold within about $US15 of it's all-time high and oil is doing quite well.

"So there is a number things in the AUD's favour and if we don't get a reemergence of negative news regarding the Eurozone debt issues, then certainly it could hit parity."

"But in the meantime, it (the Australian dollar) has reclaimed the US99c level.

"Certainly a more positive outlook for the Aussie dollar at this time, compared to a week ago."

Mr Waterer expects the Australian unit to trade in a range between US98.20c and US99.50c this afternoon.

Meanwhile, the bond market was stronger at noon.

At noon on the ASX 24, the December 10-year bond futures contract was at 94.545 (implying a yield of 5.455 per cent), up from Friday's close of 94.500 (5.500 per cent).

The December three-year bond futures contract was at 95.020 (4.480 per cent), up from the previous close of 94.960 (5.040 per cent).