SYDNEY: The Australian dollar is higher after US data showed a stronger than expected rise in the number of people with jobs in the world’s largest economy.
At 7.21am (AEDT), the currency was trading at US72.39 cents, up from US73.30 cents on Friday.
Meanwhile, European Central Bank president Mario Draghi, speaking in New York, said there was no limit to the central bank’s stimulus tools.
Westpac’s Imre Speizer said the US non-farm payrolls report for November beat expectations, defying the weaker trends in the ISM surveys.
“The US payrolls report was stronger than expected, sealing a strong case for the (Federal reserve) to hike on 16 December,” he said in a note.
“Payrolls rose 211k, along with very healthy upward revisions to the last two months of +35k.
“Household employment backed the establishment data showing a 244k gain. Encouragingly the labour force grew 273k though hourly earnings were more moderate at +0.16 per cent. “However, markets were surprisingly restrained, perhaps still reeling from the previous day’s ECB disappointment.”
The main focus for local markets today will be Australian construction data, eurozone Sentix investor confidence and German industrial production.
Mr Speizer said he expected the Australian dollar to retain its upward momentum and should again test the US73.80-73.85c area during the days ahead.
