THE dollar fell after the jobless rate rose to a 10-month high.
Official figures showed the unemployment rate rose for a second consecutive month, to 5.3 per cent in August, from an unrevised 5.1 per cent in July.
The local unit fell half a US cent in 30-minute period after the release of the jobs figures.
By 5pm (AEST) today, the dollar was trading at 105.96 US cents, down from 106.06 cents yesterday.
It started the local session at 7pm (AEST) todayat 106.60 US cents.
Easy Forex currency dealer Tony Darvall said the jobs figures pushed the dollar lower during the local session.
He said the local currency also fell because traders were getting out of risk assets such as the dollar ahead of key market events last night.
"Part of it is we had some poor unemployment data, we've also had quite sluggish stocks in Asia," Mr Darvall said.
"We're seeing a bit of negativity coming in ahead of tonight's announcements."
Tonight the European Central Bank and the Bank of England will announce their interest rate decisions.
Also, President Barack Obama will give a speech to Congress on a $US300 billion plan to stimulate the American economy.
The initiative is believed to include tax cuts, infrastructure spending and direct aid to state and local governments.
US Federal Reserve chairman Ben Bernanke will deliver a speech in Minnesota.
"The Aussie did quite well yesterday, so it's quite natural to have a bit of a pullback ahead of these announcements and the unemployment data definitely didn't help," Mr Darvall said.
"This level we're at, 105.80 US cents, is getting a bit of support.
"But if the market wants to take profits across the board, then the dollar could get pressed down to that next level which is 105.20 US cents."
The RBA's trade weighted index was at 76.4, steady from yesterday.
