Weak US jobs data and strong Chinese trade figures, along with a decisive federal election outcome, have given the Australian dollar a boost.
Early Monday morning, the local unit was trading at 92.05 US cents, up from 91.47 cents on Friday.
ANZ senior manager FX in Auckland Sam Tuck said the Australian dollar was driven higher on Friday after US non-farm payrolls data for August came in weaker than expected.
The US economy added 169,000 jobs in August, the US Labor Department said, below expectations for a 175,000 gain.
In a sign that the US labour market’s recovery continues to be rocky, July’s hiring was revised to just 104,000 from a previously reported 162,000, the lowest in more than a year.
“The real thing about the payrolls was the negative revisions to the July and June series,” Tuck said.
“It’s a bit of a worrying sign for the US employment situation, so there was a broad-based US dollar move on Friday night.”
Mr Tuck said the Australian dollar was further boosted over the weekend with the release of stronger-than-expected export figures from China.
Stronger exports to recovering overseas economies saw China’s August trade surplus widen to $US28.6 billion ($A31.50 billion), according to customs figures, beating expectations of a $US20.4 billion trade surplus.
“The exports are a good sign, it means China has got a good third-quarter lined up,” Tuck said.
Tuck said the Coalition’s victory at Saturday’s federal election, although long predicted by the market, was also weighing on the Aussie dollar.
“The fact that it was a much more decisive victory would be taken as a good sign for confidence from offshore and typically, centre-right governments are more business friendly,” he said.
Australian shares opened firmer Monday.
RBS Morgans senior private client adviser Bill Chatterton said the reality of a new government, which has promised to repeal the carbon and mining taxes, was exciting investors.
“In the shorter term … if you wanted to choose one that would be having more impact today, it would the election victory,” he said.
At midday, mining giant BHP Billiton had gained 34 cents to $35.50 and Rio Tinto had added 24.5 cents to $61.335.
But iron ore miner Fortescue had fallen eight cents to $4.47, while gold miner Newcrest had shot up 30 cents, or 2.3 per cent, to $13.10.
The major banks were also higher, with National Australia Bank adding 19 cents to $32.96, ANZ up 16 cents to $29.85, Commonwealth Bank rising 21 cents to $73.37 and Westpac gaining 13 cents to $31.77.
Surprisingly, finance group McMillan Shakespeare, which offers novated car leasing packages, lost 48 cents, or 3.58 per cent, to $12.92 even though the coalition has promised not to proceed with Labor’s proposed tightening of fringe benefit tax rules.
Retail giant Woolworths also went backwards, shedding 77 cents, or 2.19 per cent, as it went ex-dividend, to $34.46 but Wesfarmers added 17 cents to $40.57.
Telco giant Telstra was up three cents to $4.83, considering that an Abbott government has vowed to fix mobile phone black spots.
Making news, Cash Converters is seeking to raise $50 million to $60 million through an issue of corporate bonds to repay part of the group’s existing debt and to fund further investments.
Its shares were down half a cent, or 0.41 per cent, at $1.215, at midday.
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