Forex - Australian dollar back above 0.78 usd after jobless data

SYDNEY - The Australian dollar rose back above 0.7800 usd after Australian Bureau of Statistics (ABS) data showed the unemployment rate remained at an adjusted 4.6 pct in December from November.

At 12:06 am Sydney time (0106 GMT) the Australian dollar was at 0.7812 usd from an earlier high of 0.7825 and well above 0.7780 usd traded before the data release.

The unemployment rate for December was below the market consensus forecast of a rise to 4.7 pct for the second consecutive month, with the number of people employed increasing by 44,600 in the month to 10.3373 mln compared with consensus forecasts of a 15,000 rise.

The ABS data also showed the trend rate of unemployment remained at a steady 4.6 pct.

Westpac economists said they see 0.7835 usd as the next resistance level for the Australian dollar.

'We still see the Australian dollar as a sell on strength, but the data clearly suggests holding back for higher levels to sell,' they said.

Meanwhile, the Westpac economists said they remain of the view that the Reserve Bank of Australia will raise interest rates by 25 basis points to 6.25 pct at its first meeting for 2007 in early February.

This follows the central bank hiking interest rates by 75 basis points in 2006, the latest being the 25 basis point rise in early November.

'Labor market strength is boosting household incomes, at the same time that household wealth is on the rise. This points to the consumer being relatively resilient in the face of interest rate rises,' Westpac said.

'This will do nothing to allay RBA inflation concerns.'