Australian Dollar Extends Gains After Employment Increases a Second Month

By Candice Zachariahs and Ron Harui - May 12, 2010

Australia’s dollar rose, ending a two-day drop, after a report showed employers added jobs for the seventh time in eight months.

The so-called Aussie strengthened against 14 of its 16 major counterparts on speculation the central bank will raise interest rates further on signs the nation’s economic recovery is gathering momentum. New Zealand’s dollar climbed for the first time in three days after a report showed the manufacturing industry expanded at the fastest pace in more than five years in April amid rising production and orders.

“In Asia, it’s certainly looking as if today might be a ‘risk on’ day,” said Andy Robinson, an analyst at Saxo Capital Markets Pte in Singapore. “In order to get any upward momentum, we need to break the 89.90 level, basically getting back on the 90 big-figure handle.”

Australia’s currency advanced to 89.62 U.S. cents as of 11:34 a.m. in Sydney from 89.36 cents in New York yesterday. It rose 0.3 percent to 83.53 yen. New Zealand’s dollar climbed to 71.59 U.S. cents from 71.32 cents, and strengthened 0.3 percent to 66.71 yen.

Australian employers added 33,700 jobs in April from the previous month, the statistics bureau said in Sydney today. The median estimate of 22 economists surveyed by Bloomberg News was for an increase of 22,500. The jobless rate was 5.4 percent.

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