Dollar treads water

The Australian dollar is treadingdollar water as investors await the release of highly anticipated jobs figures on Thursday.

At 0700 AEDT on Wednesday, the local currency was trading at 81.55 US cents, virtually unchanged from 81.56 cents on Tuesday.

The Australian dollar took a hit on Tuesday following a slide in oil prices but had a short lived boost later in the afternoon on better than expected Chinese trade figures.

“The Australian dollar had something of a small song and dance after better than expected growth in Chinese exports and strong implied import volumes,” National Australia Bank senior economist, David de Garis, said.

“The Aussie, though, relented back around mid 81 US cents this morning.”

The next big event for the currency will be the release of jobs figures on Thursday.

Economists will pay close attention to the figures as a deterioration of the labour market could suggest that another rate cut from the Reserve Bank is needed.

Australia’s unemployment rate is expected to have held steady at its 12 year high of 6.3 per cent in December, according to an AAP survey of 13 economists.

AAP

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