The Australian dollar has stabilised after last week’s falls on the back of weaker than expected jobs figures and a downbeat economic update from the central bank.

At 0700 AEST on Monday, the local currency was trading at 92.76 US cents, up from 92.58 cents on Friday.

The Australian dollar slumped to two month lows last week after the unemployment rate unexpectedly rose to 6.4 per cent and the Reserve Bank’s quarterly statement was perceived as being more downbeat.

US President Barack Obama’s announcement that US warplanes would, if necessary, launch air strikes in Iraq also put pressure on the currency.

National Australia Bank global co-head of FX strategy Ray Attrill said the local currency had stabilised over the weekend.

“The Australian dollar finished New York trade little changed on Friday at 92.75 US cents having reached an intra day, two month low of 92.39 cents following the downward revision to the Reserve Bank’s growth forecast,” Attrill said.

“We have opened little changed this morning.”

AAP