Dollar lower on US job figures
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Disappointing US labour force figures were the key factor pushing the Australian dollar down on Monday.
At 1700 the Australian dollar was trading at 101.91 US cents, down from Friday's close of 102.55 US cents.
It had fallen to its weakest point in 10 days on Monday morning, after US non-farm payrolls data showed an increase of only 80,000 new jobs in June, compared to an expectation of 100,000.
RBC currency strategist Michael Turner said that since then, there had been very little movement in the Australian currency.
"It's done very little today, moving within a twenty point range, after opening near 102 (US cents)," he said.
"Equities throughout Asia weakened today, but the Aussie dollar did better than most currencies."
"There's a euro-group meeting tonight, and we have domestic labour force figures on Thursday, and that will be important," he said.
Expectations for QE3 (quantitative easing) are also increasing, which should buoy the Aussie dollar relative to the US dollar anyway."
The Australian currency was trading at 81.17 Japanese yen, down from 81.88 yen, and 82.87 euro cents, down from 82.92 cents at 1700 on Monday.
Meanwhile, the US data pushed Australian bond future prices higher.
At 1630 AEST on Monday, the September 10-year bond futures contract was trading at 97.095 (implying a yield of 2.905 per cent), up fractionally from 97.005 (2.995 per cent) on Friday.
The September three-year bond futures contract was at 97.690 (2.310 per cent), up from 97.570 (2.430 per cent).
Deutsche Bank fixed income strategist David Plank said the weak data was still Monday's focal point on global markets.
"There was no great surprise there and we've seen weakness across Australian and Asian equities and that's reinforced the risk-on atmosphere that came from the disappointing payrolls data."
It would be difficult to predict moves this week, Mr Plank said, given the varying position of Australian bond yields in previous weeks.
"If you look at the past month, what we've seen is up or down 10 basis points on a regular basis, but very much clustered around that three per cent for the 10 year (bonds)," he said.
"I think any sell-offs are going to be pretty limited because of concerns around the global economy and the prospect of QE3 (quantitative easing).
"If we break in any substantial direction in the near term, it will probably be lower in yield."