Dollar hits one month high

 

Australian, dollar, notes, moneyThe Australian dollar has hit a one month high, extending its gains after the release of solid employment figures.

In the early hours of the morning the currency peaked at 94.39 US cents, its highest level since April 10.

At 0700 AEST on Friday, the local unit was trading at 94.26 US cents, up from 93.94 US cents on Thursday.

The total number of people with jobs fell 4,800 in May and the unemployment rate stayed steady at 5.8 per cent, official data showed on Thursday.

BK Asset Management managing director Kathy Lien said there was initially a sell off after figures were released but then the Australian dollar started to grind higher.

“Once traders had a chance to look beneath the headline and saw that all of the jobs lost were part time with full time employment growing by 22,200, they expressed their relief,” she said.

“At the end of the data, the overall report was not nearly as weak as the headline numbers but it still raises some red flags for the labour market.”

Ms Lien said investors were now waiting for the release of Chinese retail sales and industrial production data for May.

“Acceleration in demand or manufacturing activity could send the Australian dollar and and the New Zealand dollar to fresh highs,” Ms Lien said.

AAP

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.