The Australian dollar has continued higher on the back of surprisingly weak US employment figures.
At midday on Monday, the local currency was trading at 93.72 US cents, up from 93.51 cents on Friday.
US employers added just 142,000 jobs in August, snapping a six-month streak of hiring above 200,000 and posting the smallest gain in eight months.
The disappointing figures caused a US dollar sell-off which pushed the Australian dollar briefly above 94 US cents on Friday night, FXCM market analyst David de Ferranti said.
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“The miss from the jobs-added figure alongside subdued wage growth and a decline in the participation rate reinforces the view that the US Federal Reserve will leave rates at record lows over the near term,” Mr de Ferranti said.
“This in turn is a negative for the greenback and leaves the reserve currency lacking fuel to sustain its recent upside momentum.”
The next major event for the Australian dollar would be local jobs figures being released by the Australian Bureau of Statistics on Thursday, Mr de Ferranti said.
