DATA showing only modest growth in US jobs during December dampened expectations that the Federal Reserve will bring its bond-buying program to an end sooner than expected, weighing on the greenback and helping lift the Aussie dollar in the process.
DATA showing only modest growth in US jobs during December dampened expectations that the Federal Reserve will bring its bond-buying program to an end sooner than expected, weighing on the greenback and helping lift the Aussie dollar in the process.
US non-farm payrolls increased by a seasonally adjusted 155,000 last month, just below the upwardly revised 161,000 gain in November, the Labour Department said. The unemployment rate, obtained by a separate survey of US households, was 7.8 per cent, the same as the previous month, after an upward revision to the November figure.
At 5pm AEDT, the dollar was buying $US1.0472, up US0.29c.
Analysts expect the dollar will continue to enjoy strong support, helped by a mix of improving prices for iron ore, better investor sentiment and likely improving domestic economic data.
"The $US1.053 area may offer resistance on the way back to test $US1.06," said Marc Chandler of Brown Brothers Harriman.
A strong rally in iron ore prices during November probably would not yet be captured by this data, said Stephen Walters, chief economist at JPMorgan.
Retail sales for November are due out tomorrow and are expected to have grown by 0.3 per cent month on month.
"We expect a slight improvement in total sales in November and a shift in the composition towards better outcomes in household goods and department store sales, for example," Mr Walters said. "However, the overall sense that households are keeping the purse strings taut will remain."
Chinese data are also in watch with inflation and trade numbers due, but Richard Grace, chief currency strategist at Commonwealth Bank, said GDP numbers from China later this month would be the bigger focus.
"The major Chinese economic data's influence on the Australian dollar is set to come on January 18, with the release of China's fourth-quarter GDP. Support for the Australian dollar currently remains solid at $US1.04," he said.
