THE Australian dollar is trading near a three-week high in late trading today,following on from its gains last Friday after the latest US non-farm payrolls figure hit the market under expectations.
At 6.57pm (GMT) the local currency was trading at US74.11c up from a low of US73.53c on Friday.
The American economy added 215,000 jobs in July, which was just shy of expectations for a number of 229,000 while the unemployment rate came in at 5.3%, holding at a 7 year low.
BK Asset Management managing director Kathy Lien noted that while the number was a strong result, like any number above 200,000, the market was hoping for a little more. All things aside she also said that the result was still enough for the Fed to consider raising rates in September.
“If the Federal Reserve was looking for some improvement in the labour market, the release certainly met those expectations and yet the US dollar lost value against most of the major currencies,” she said.
“Not only does the report leave September lift-off on the table but we believe it hardens the case for tightening at the next monetary policy meeting.” She added.
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