/www.fxserver.com/ THE Australian dollar strengthened today on the back of US dollar weakness, but a soft Australian labour report impacted on the local currency.
At 1200 AEST, the dollar was at $US0.6043/48 compared with $US0.6031/36 at yesterday's close.
The dollar had firmed across the morning reaching a high around $US0.6076, but a worse than expected labour report sent the local currency retreating to $US0.6040 shortly before noon – its low for the session.
The Australian Bureau of Statistics said today the unemployment rate edged higher to 6.2 per cent, seasonally adjusted, in March, from an unrevised 6.0 per cent in February.
Total employment fell 42,800, seasonally adjusted, compared to a fall of 12,300 in February.
MMS International strategist Glen Bull said the Australian dollar briefly dipped lower following the 1130 (AEST) data release, but noted the weaker US dollar still dominated the local currency.
Overnight the local currency pushed higher as the US dollar stumbled when investors started to shift their focus from war in Iraq to the gloomy United States economic outlook.
Mr Bull said support at the $US0.6020 level should limit any move towards the downside in the Australian dollar, but remained sceptical as to how long this US dollar weakness would hold out.
"At the moment the US dollar is fading everywhere, but I'm suspicious that this is just a gap before the US dollar strength returns," he said.
At 1200 AEST the Australian dollar on the Reserve Bank of Australia Trade Weighted Index was at 55.1 points from 55.0 at yesterday's close.