Australian Dollar Rises


The Australian dollar gained against the U.S. currency and bonds fell after a government report showed jobs rebounded in June by three times the amount forecast by economists.

The currency climbed the most in three months as the report prompted traders to resume betting the central bank will raise interest rates for a third time this year to cool inflation. The number of people employed rose 29,800 last month after a revised 25,600 drop in May.

The Australian dollar jumped 1 percent to 96.00 U.S. cents at 11:38 a.m. in Sydney, from 95.55 cents before the report and 95.17 cents in late Asian trading yesterday.

Australian two-year government bonds reversed an earlier gain, ending a five-day winning run after the report. The yield rose 1 basis point, or 0.01 percentage point, to 6.70 percent. Bond yields move inversely to price.

The Australian dollar fell to a three-week low yesterday as traders reduced bets the central bank will raise borrowing costs after a government report showed home-loan approvals slid by the most in eight years and a private-sector survey of consumer confidence dropped to the lowest level since 1992.


TradingEconomics.com, Bloomberg
7/9/2008 7:38:41 PM