8 November 2001, 08:41  Forex - Australian dollar lower, bond prices mixed after Oct employment data

SYDNEY (FWN) - The Australian dollar was slightly lower while bond prices were mixed after the release of October employment data, dealers said. The unemployment rate in October rose to a seasonally adjusted 7.1 pct from 6.7 pct in September. Total employment increased a seasonally adjusted 17,900 to 9.183 mln in October from 9.165 mln in September, the Australian Bureau of Statistics said. The median market forecast was for the unemployment rate to rise to 6.9 pct, with forecasts ranging 6.7-7.1 pct. Employment was expected to have decreased by 2,500, with forecasts ranging from a fall of 20,000 to a rise of 30,000. A dealer with IBJ Australia Bank said the future interest rate market initially saw a decline in yields after the data, but they have climbed back up a bit. The Australian dollar fell, but more because of profit-taking rather than the data, which saw unemployment rate higher than market's expectation. He said there are some selling orders for the local unit at 0.5170 usd. If the level is broken in offshire trading tonight, the Australian dollar could trade toward 0.5200. At 12.30 pm, the Australian dollar was at 0.5154 usd, down from 0.5160. The 10-year government bond yield was at 5.00 pct, up from 4.98. The 90-day bills yields 4.19 pct, down from 4.20.

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