Dollar rallies on jobs data

DOLLAR pushes back above the US102c mark after key jobs data showed a fall in the national unemployment rate.

THE Australian dollar has pushed back above the 102 US cent mark after key jobs data showed a fall in the national unemployment rate.

At 12pm AEST today, the currency was trading at 102.25 US cents, up from 101.88 US cents yesterday.

LTG GoldRock director Andrew Barnett said the dollar rallied following the release of official employment figures at 11.30am AEST.

"The Aussie dollar has, obviously, received a bit of a bounce because of that better-than-expected unemployment number," he said. "That doesn't surprise me given that it has been smashed in the last couple of weeks."
 
Australian Bureau of Statistics (ABS) data today showed the unemployment rate fell to 5.1 per cent in August, down from 5.2 per cent the previous month.

Mr Barnett said the dollar could rise further tonight (Australian time) with the highly anticipated meeting of the European Central Bank (ECB). Leaks ahead of the meeting indicate the ECB will unveil an unlimited bond-buying program in a bid to combat the continent's sovereign debt crisis.

"If (ECB president) Mario Draghi comes out and outlines a more detailed plan about buying sovereign debt, we'll probably see commodity prices rally and the euro (currency) rally," he said.

"If the euro rallies, the Aussie dollar is probably going to see some buyers again."

Meanwhile, Australian bond future prices were lower at noon. At 12pm AEST today, the September 10-year bond futures contract was trading at 97.020 (implying a yield of 2.980 per cent), down from 97.050 (2.950 per cent) yesterday.

The September three-year bond futures contract was at 97.610 (2.390 per cent), down from 97.640 (2.360 per cent).