Dollar higher on job data

money, dollar notesThe Australian dollar is higher after US jobs data showed a decent rise in the number of people with jobs in the world’s largest economy.

At 0721 AEDT on Monday, the currency was trading at 72.39 US cents, up from 73.30 cents on Friday.

Meanwhile, European Central Bank president 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 expecations, 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 days ECB disappointment.”

The main focus for local markets on Monday will be Australian construction data, Eurozone Sentix investor confidence and German industrial production.

Speizer said he expected the Australian dollar to retain its upward momentum and should again test the 73.80-73.85 area during the days ahead.

AAP

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