The Australian dollar is higher after briefly breaking 92 US cents on the back of stellar employment figures.
At 1200 AEST on Thursday, the local unit was trading at 91.96 US cents, up from 91.56 cents on Wednesday.
The total number of people with jobs rose by 121,000 in August, the largest monthly gain in 23 years.
The number far exceeded market expectation of employment growth of 10,000 in the month.
The unemployment rate fell to 6.1 per cent in August from 6.4 per cent in July.
After the data was released the currency rose by more than half a US cent to peak at 92.18 cents.
Forex.com research analyst Chris Tedder said the gain was short lived after traders had a chance to have a closer look at the figures.
“A lot of the employment gains came in the part time sector, which caused some people to question the absolute strength of the report,” he said.
“It does justify a some what higher currency at the moment but it is not game changing for the Aussie.”
Mr Tedder says it is inevitable that the Australian dollar will again start falling against the rallying greenback.
“The Aussie got a nice boost there but again it is succumbing to some US dollar strength, so any sort of gain in the Aussie will be battling against the current,” he said.
“We still looking at a further depreciation of the Aussie dollar.”
Meanwhile, Australian bond futures prices were lower.
At 1200 AEST on Thursday, the September 2014 10-year bond futures contract was trading at 96.405 (implying a yield of 3.595 per cent), down from 96.440 (3.560 per cent) on Wednesday.
The September 2014 three-year bond futures contract was at 97.140 (2.860 per cent), down from 97.200 (2.800 per cent).
Mr Sebastian said a boost to consumer and business confidence would bode well for for retail spending activity in the coming months.
However, he doesn’t believe the jobs figures will spark an earlier than expected interest rate hike from the RBA.
“I think the Reserve Bank will be comfortable being on the interest rate sidelines,” Mr Sebastian said.
“They’ve already highlighted that the labour market is in a transition phase and it will take some time yet for that recovery to be fully fledged.”
