Dollar lower off US results

The Australian dollar has opened lower, dropping below 104 US cents in response to a disappointing US jobs report. At 0700 AEST on Monday, the Australian dollar is at 103.68 US cents, down from Friday’s local close of 104.15 US cents.

The Australian dollar fell against both the US dollar and the euro in New York trading, after figures showed the US economy added 88,000 jobs in March.

The result was well below market expectations of a 190,000 improvement and the slowest monthly gain in nine months.

“After the non-farm payrolls the Australian dollar came immediately under pressure, going down to its lows,” HiFX senior trader Stuart Ive said.

“If you look at the Australian dollar against a euro/US dollar chart at the moment, you will see that the euro flew higher after the non-farm payrolls and the Australian dollar got sold off.”

At 0700 AEST, the Australian dollar was at 79.92 euro cents, down 0.8 per cent from Friday’s local close of 80.59 euro cents. Some technical trading had also led to Australian dollar weakness against the US dollar and euro, Ive said.

However, the massive stimulus plan announced by the Bank of Japan last week continued to push the Australian dollar to fresh highs against the Japanese yen and levels last reached in the 1990s.

At 0700 AEST, the Australian dollar was at 101.83 yen, up 1.5 per cent from 100.35 yen previously.

In economics news on Monday, the Australian Industry Group-Housing Industry Association performance of construction index for March is due for release. The ANZ job advertisements series for the same month will also be published.

AAP

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