THE dollar was trading lower at noon, as a weak global economic outlook and a slight rise in the unemployment rate pushes the local currency down.
At midday (AEST), the dollar was trading at $US0.8928/30, down from yesterday's close of $US0.9044/46.
Since 7am, the local currency traded between $US0.8920 and $US0.8976, according to IRESS data.
The local currency fell through the US90c barrier overnight amid concerns over the global economy after weak Chinese data and the Federal Reserve's bleak outlook on the US economy.
Australian labour force data released today showed the unemployment rate rising to 5.3 per cent in July, up from 5.1 per cent in June.
RBC senior economist Su-Lin Ong said it was a fairly healthy jobs report, despite the increased jobless rate.
"Participation is up at 65.5 per cent, not far from record levels, and I think that's quite consistent with a healthy labour market as new entrants come in, she said.
Start of sidebar. Skip to end of sidebar.
End of sidebar. Return to start of sidebar.
The dollar fell US0.25c after the release of the jobs data at 11.30am.
"The market is taking it as a weaker number just because of that move up in the unemployment rate," Ms Ong said.
"I guess there's a little bit of risk sentiment at the moment.
"The Aussie was trading at some fairly high levels, but there's just a general bit of concern about the global picture.
"The US economy and global growth is going to keep the Aussie under a little bit of pressure."
Meanwhile, the debt market was stronger at noon.
At midday, the yield on the Commonwealth Government April 2020 bond was 4.987, down from yesterday's close of 5.047 per cent, while the May 2013 bond was at 4.439, down from 4.540 per cent previously.
On the Sydney Futures Exchange, the September 10-year bond futures contract was at 95.025, up from yesterday's close of 94.955, while the September three-year bond futures contract was at 95.500, up from 95.390.
Tennessee officials meet on bond ratingDollar on upward slant, but bonds mixed
