The Australian dollar is sharply higher today after strong employment numbers all but ended the chances of a rate cut by the Reserve bank of Australia this year.

At 11.45 am (GMT) the Aussie dollar was trading at US71.35c up from US70.56c in yesterday’s trade.

The Australian Bureau of Statistics reported a surge in employment numbers for the month of October, with the number increasing by 58,600, which was well above analysts’ expectations for a figure of 15,000.

The biggest shock this time around is that the majority of new jobs (40,000) were created in the full time sector.

The unemployment rate also fell from 6.1% to 5.9% marking the lowest rate since May 2015.

The figures have justified RBA governor Glen Stevens’s predictions in his monetary policy speech last week where he noted that interest rates in Australia were in fact likely to go up before they go down.

Some analysts warned not to look too much into the figures, as they have been quite volatile of the last few months with the average unemployment rate sitting around 6.1 percent.

Most would need to see another few months of positive data to be convinced that the unemployment rate is finally reaching a bottom, and the Australian economy is making the transition away from the mining boom.

The Australian dollar has now regained all of its losses after the strong non-farm payrolls report out of the US last week sent the currency tumbling, but with a rise in interest rates likely from the US Fed this year the Aussie dollar’s run is likely to be short lived.