Bloomberg News

Australian Dollar Falls on Weaker-Than-Forecast U.S. Job Data

July 08, 2011

July 8 (Bloomberg) -- The Australian dollar fell against the yen and the U.S. dollar as weaker-than-forecast U.S. jobs data damped demand for currencies linked to riskier assets.

The Aussie, as it is commonly called, posted weekly losses against both the dollar and the yen as U.S. employers added the fewest jobs in nine months and the jobless rate unexpectedly increased to 9.2 percent. New Zealand’s dollar had its third weekly gain against the yen and second against the U.S. dollar.

“After that poor jobs data, U.S. stocks are falling, so we are seeing a sale across the board of higher yielding currencies like the Aussie,” said John Doyle, a strategist in Washington at the currency-trading firm Tempus Consulting Inc.

Australia’s dollar fell 1.2 percent to 86.52 yen at 12:18 a.m. in New York, from 87.55 yen in New York yesterday. The Aussie fell 0.5 percent to $1.0727.

New Zealand’s dollar fell 0.7 percent to 67.27 yen from 67.72 yen. It rose 0.1 percent to 83.40 U.S. cents from 83.34 cents yesterday. It touched 83.61 cents today, the highest since the currency was freely floated in 1985.

The Aussie fell 0.6 percent against the yen this week and 0.4 percent against the U.S. dollar. New Zealand’s dollar strengthened 0.6 percent versus Japan’s currency and 0.8 percent against the U.S. dollar.

The S&P 500 Index dropped 1.1 percent and the Dow Jones Industrial Average fell 0.9 percent.

The number of people employed in Australia rose by 23,400, led by a jump in full-time jobs, the statistics bureau said yesterday. That was higher than the median estimate for a 15,000 increase in a Bloomberg News survey of economists. The jobless rate held at 4.9 percent. Employment dropped by a revised 500 in May following a 28,300 decline in the previous month.

--Editor: Paul Cox, Dave Liedtka

To contact the reporter on this story: Joe Ragazzo in New York at jragazzo@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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