Aussie dollar rallies on jobs print

The local unit was close to half a cent higher in early afternoon trade, buoyed by falling unemployment.

The Australian dollar has rallied on upbeat official job figures showing the unemployment rate has fallen.

At 1pm (AEST) on Thursday, the local unit was trading at US76.99 cents, up from US76.54c cents on Wednesday.

The national unemployment rate fell to 5.7 per cent in July, from 5.8 per cent in June, while the total number of people with jobs rose 26,200, beating market expectations of 10,000 more jobs, the Australian Bureau of Statistics’ figures show.

The path has now been paved for the Australian dollar to climb higher, OANDA Australia and Asia Pacific senior currency trader Stephen Innes says. Mr Innes says the strong jobs data eliminates “one element in the Reserve Bank of Australia’s rate cut debate”.

“With the US dollar trading on its heels, the path of least resistance is higher for the Aussie,” he said.

AAP