Dollar bounces

Disappointing US retail salesmoney, trading, dollar have lifted the Australian dollar above 81 US cents.

At 0700 AEDT on Thursday, the local currency was trading at 81.48 US cents, up from 80.93 cents on Wednesday.

Official figures overnight showed that US retail sales slumped in December, falling 0.9 per cent, despite cheaper petrol prices and falling unemployment.

“US equities, interest rates and the US dollar all fell in response to a disappointing US retail sales report,” Westpac senior market strategist in Wellington, Imre Speizer, said.

“The Australian dollar pared almost all of yesterday’s copper-related losses, bouncing from 80.68 US cents to 81.80 cents on broad US dollar weakness.”

Coming out on Thursday will be the all-important jobs figures from the Australian Bureau of Statistics at 1130 AEDT.

Most economists surveyed by AAP expect unemployment to have held steady at 6.3 per cent in December, with 5000 jobs added.

AAP

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