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$A higher despite morning losses

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Published on: Monday, September 09, 2013

by AAP

The Australian dollar remains higher on weak US jobs data, despite losing ground during morning trade.

At 1200 AEST on Monday, the local unit was trading at 91.89 US cents, up from 91.47 cents on Friday.

The Aussie dollar hovered around 92 US cents early on Monday morning, boosted by weaker-than-expected US jobs data released on Friday night as well as stronger-than-expected Chinese trade figures.

ANZ foreign exchange strategist Andrew Salter said the local currency was dragged lower by weak job ads data.

Job advertisements declined 2.0 per cent in August, the sixth consecutive monthly decline according to the ANZ Job Advertisements series.

"We had an improving outlook in China, some weakness in the US dollar following the payrolls release on Friday, the market toying with the idea that the Reserve Bank is done cutting interest rates in this cycle and the intra-day community was trying to push the currency higher," Mr Salter said.

"But the weaker ANZ job ads series this morning has thrown a spanner in the works and as a result we're trading below 92 US cents.

"The job ads challenge the view that the RBA is going to be on hold."

Meanwhile, Australian bond futures prices were higher.

The September 10-year bond futures contract was trading at 95.910 (implying a yield of 4.090 per cent), up from 95.855 (4.145 per cent) on Friday.

The September three-year bond futures contract was at 97.020 (2.980 per cent), up from 96.980 (3.020 per cent).


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