Dollar higher, awaiting more US jobs data

THE Australian dollar is slightly higher, trading in a tight range as traders await the release of key US jobs data.

THE Australian dollar is slightly higher, trading in a tight range as traders await the release of key US jobs data.

At 12pm AEDT today, the local unit was trading at 102.65 US cents, up from 102.40 cents yesterday.

Since 7am AEDT today, the Australian dollar traded between 102.59 US cents and 102.78 cents.

Early tomorrow morning (Australian time), the US will release non-farm payrolls for February, its key measure of employment.

CMC Markets senior trader Tim Waterer said the Australian dollar rose during the offshore session last night in anticipation of good jobs figures.

"The US jobless claims may lead to a better non-payrolls figure," he said. "Risk appetite was in vogue again and that generally suits the Australian dollar and helped it progress higher."

"It's keeping a very tight trading range today though as are most currencies, there is a reluctance to take any new positions ahead of the US payrolls data."

The Australian dollar has hit a one-year high against the British pound of 68.53 pence.

"The Australian dollar is doing quite well against some of the cross rates," Mr Waterer said. "I think there is a potential of some profit taking to set in there, that happens when you hit some of these historic levels."

Meanwhile, Australian bond futures prices were lower at noon. At 12pm AEDT today, the March 10-year bond futures contract was trading at 96.490 (implying a yield of 3.510 per cent), down from 96.590 (3.410 per cent) yesterday. The March three-year bond futures contract was at 97.070 (2.930 per cent), down from 97.140 (2.860 per cent).