Jobless Rate of 4.9% Lifts Australian Dollar Higher, Riversdale in Focus

Marcus Jacob
07 Apr, 2011
New York City

Australian dollar continues to drift higher with no resistance after the release of jobs data. The unemployment rate dropped to 4.9%, the low last seen in December 2008. Riversdale Mining takeover offer from Rio Tinto failed to win 50% shares.

[R]5:00 PM Sydney – Australian dollar continues to drift higher with no resistance after the release of jobs data. The unemployment rate dropped to 4.9%, the low last seen in December 2008. Riversdale Mining takeover offer from Rio Tinto failed to win 50% shares. TEN Network first half net declined 15.6% on 2.2% increase in revenues.[/R]

The ASX 200 index declined 4.80 to 4,908.10 and All Ordinaries Index 5.90 to 5,005.50.

The Australian dollar increased to US$1.048 and crude oil prices declined 35 cents to US$108.48.

Australian employment growth regained its momentum in March as employers add staff after floods in Queensland. The unemployment rate declined to the lowest rate since December 2008.

The latest data from the Australian Bureau of Statistics today showed an increase of 37,800 jobs and jobless rate declined to 4.9% in March from 5% in February.

Employers added 32,100 full-time staff and 5,700 part-time workers.

Stock Movers

Riversdale Mining increased 9 cents to $16.51 after Rio Tinto bid attracted less than 50% of shares and the company again renewed its campaign and urged shareholders to accept the offer.

Gold and silver closed at a new 31-year high and miners closed higher. Newcrest Mining declined 21 cents to $41.50.

BHP Billiton declined 27 cents to $47.68 and Rio Tinto declined 10 cents to $86. Fortescue Metals increased 1 cent to $6.68.

Banks closed mixed. National Australia Bank declined 8 cents to $25.95, Westpac fell 3 cents to $24.43 and Commonwealth Bank of Australia increased 25 cents to $52.55.

Energy stocks advanced as tensions in the Middle East remained high and Western powers aggression continued in Libya.

Santos increased 18 cents to $16.18 and Origin Energy added 39 cents to $16.77 and Oil Search gained 7 cents to $7.28.

Woodside Petroleum declined 5 cents to $46.95 after traders speculated that company sale may not be in the best interest of shareholders at this time.

Billabong International Limited fell 12 cents to $7.44 and Woolworths Limited eased 9 cents to $26.98.

TEN Network Holdings said first half revenues increased 2.2% to $484.2 million and net declined 15.6% to $49.5 million from $58.7 million a year ago period.