The Australian dollar is back above 93 US cents after US employment data disappointed the market.

At 0700 AEST on Monday, the local unit was trading at 93.10 US cents, up from 92.80 cents on Friday.

The US economy generated 209,000 new jobs in July, the Commerce Department reported on Friday, weaker than the gain of 230,000 the market expected.

BK Asset Management MD Kathy Lien said the US dollar fell against most of the major currencies after the non-farm payrolls report.

“Not only did payroll growth fall short of expectations but the unemployment rate rose to 6.2 per cent from 6.1 per cent,” she said.

“If the jobless rate held steady and average hourly earnings increased, the decline in the US dollar would have been more modest.”

Lien said the Australian dollar was still getting support from strong Chinese manufacturing figures that were released during the local session on Friday.

Chinese manufacturing activity increased at its fastest pace in more than two years in July, as the world’s second largest economy shows signs of increasing momentum.

On Monday, local markets will focus on the release of June retail spending figures from the Australian Bureau of Statistics.

AAP