At 7am (AEDT), the Australian dollar was trading at $US0.6803/06, up US1c, or 1.5 per cent, from Friday's close of $US0.6701/07.
During the weekend offshore session, the unit traded between a low of $US0.6650 and a high of $US0.6807.
US non-farm payrolls - a key employment report - showed the US economy lost 240,000 jobs in October, which was worse than the market forecast of a 200,000 decline.
There also were large downward revisions to the previous two months' data - the number of job losses in August was increased to 127,000, from 73,000, while the September number jumped sharply to 284,000, from 159,000.
The revisions showed the US economy has lost 1.2 million jobs so far this year, with 615,000 of those shed in the past three months.
LatitudeFX lead sales executive Jim Devonport said the previous months' job losses had prompted investors to sell the US dollar.
"The downward revisions to the prior month's data was what really put the hammer in the coffin and hit the market hard,'' Mr Devonport said from Auckland.
"This has hit the US dollar hard and put the economy firmly on track to recession.''
Employment has fallen in the US for 10 straight months.
Also, it was the first time in 26 years the US's unemployment rate (at a 14-year high of 6.5 per cent) was higher than that of Canada (6.2 per cent).
Mr Devonport said higher commodities prices - crude oil and gold prices rose slightly over the weekend - also supported the Australian dollar.
The Reserve Bank of Australia (RBA) publishes its latest quarterly statement on monetary policy at 11.30am AEDT.
Also, the Australian Bureau of Statistics releases housing finance data for September.
Mr Devonport said the major direction for currency markets would be from off-shore.
"We're still looking to the Dow as a barometer for risk and if the US economy is going to drag everyone else down,'' Mr Devonport said.
Nashville job engine sputters
Traders see silver lining to jobs data
Dollar hits five-year low, below US69c
Jobless rate hits ‘87 level
