The Australian dollar closed slightly lower yesterday after mixed employment figures indicated the central bank would hold on interest rates next month.

At the close, the currency was trading at US91.43c, down from Wednesday’s US91.52c.

Nomura Australia chief economist Stephen Roberts said the low point of the trading day came after the release of employment statistics at 11.30am (AEDT), showing a seasonally adjusted 5.3 per cent in February compared with a downwardly revised 5.2 per cent in January.

Total employment rose by just 400 to 10.971 million in February, seasonally adjusted.

Mr Roberts said a weaker Australian dollar was expected after the result. “We’ve moved from a string of very strong employment readings to a not so very strong one,” he said.

“It could just be a fiscal blip, but at the very least it would seem to mean that the RBA will bide its time before it makes its next move.”

At the close, the Australian dollar was trading at 67.04 euro cents, down from Wednesday’s close of 67.30, and at 82.65 Japanese yen, up from Y82.45.

The euro finished at $US1.3643, up from Wednesday’s close of $US1.3599, and Y123.31, up from Y122.50. The US dollar was at Y90.38, up from Y90.08.

The Australian bond market closed weaker after mixed employment figures suggested the RBA might keep interest rates steady in April.

At close of trade, the yield on the Commonwealth Government April 2020 bond was at 5.668 per cent, up from Wednesday’s close of 5.550, while the yield on the May 2013 bond was at 5.139 per cent, up from 5.020.

(www.theaustralian.com.au)