THE Australian dollar closed at a seven-month high after a better than expected jobs report in the US lifted investor sentiment for riskier assets.
At 1700 AEST, the Australian dollar was trading at 76.61 US cents, up 1.2 per cent from Friday's close of 75.71 US cents.
It was the highest close for the local unit since October 3, 2008 when the unit ended the local session at 78.02 US cents.
During the local session, the currency moved between 76.61 US cents and 77.15 cents.
The US economy lost 539,000 jobs in April, which was below market forecasts for a drop of 620,000 and was the slowest monthly decline since October 2008, the US Department of Labour said.
However, the US unemployment rate continued to rise, up 0.4 percentage points to a 26-year high of 8.9 per cent.
Wall Street closed firmer during Friday's offshore session, with the Dow Jones Industrial Average ending up 1.96 per cent and the broad-market Standard & Poor's 500 index adding 2.41 per cent
A trader with online currency firm Easy Forex, Tony Darvall, said appetite for risk on financial markets rose during Friday's offshore trade as investors considered the US jobs report as another sign the American economy had passed the worst of the recession.
It was the slowest decline in jobs since October last year and below market expectations of 620,000 job losses.
Risk appetite vaulted higher following the news, with the Dow Jones Industrial Average rallying 164.8 points, or 1.96 per cent, to 8,574.65 on Saturday (AEST).
The benchmark S&P/ASX200 ended 15.7 points, or 0.4 per cent, lower at 3926, while the broader All Ordinaries lost 9.1 points, or 0.23 per cent, to 3910.5.
On the Sydney Futures Exchange, the June share price index contract rose six points at 3931 on a volume of 23,779 contracts.
AAP
