Dollar higher on jobs data

THE dollar has rallied after key employment data showed more than 14,000 jobs were added to the economy in September.

THE dollar has rallied after key employment data showed more than 14,000 jobs were added to the economy in September.

At 12pm AEDT today, the dollar was trading at 102.54 US cents, up from 102.21 US cents yesterday.

Figures released by the Australian Bureau of Statistics today showed the national unemployment rate rose to 5.4 per cent in September, from 5.1 per cent in August.

However, Commonwealth bank currency strategist Joseph Capurso said currency markets saw the data as positive, noting that 14,500 jobs had been added to the economy, well above economists' expectations for employment to rise by 5000.

He said the unemployment rate rose because of an increase in the number of people looking for work in the month.

"The increase in jobs, and particularly the increase in full-time jobs was better than expected," he said. "The Australian dollar rose about half a US cent in the immediate aftermath of that number."

Mr Capurso said the currency was likely to remain strong during the afternoon and could rise to 102.80 US cents during the European session  tonight.Meanwhile, Australian bond futures prices were higher at noon.

At 12pm AEDT today, the December 10-year bond futures were trading at 97.055 (2.945 per cent), up from 97.015 (2.985 per cent) yesterday.

The December three-year bond futures contract was at 97.630 (2.370 per cent), up from 97.620 (2.380 per cent).