Australian dollar opens higher

AAP, with a staff reporter

The Australian dollar is higher after traders in the United States and Europe welcomed surprisingly strong domestic jobs figures.

At 0700 AEDT, the currency was trading at 103.79 US cents, up from 103.64 cents at the end of the previosu session.

The Australian dollar rose to 104.02 US cents in early morning trade, its highest level since February 6, before giving up some of its overnight gains.

Figures released by the Australian Bureau of Statistics show total employment grew by 71,500 in February, the strongest jobs growth in over a decade.

Bank of New Zealand currency strategist Mike Jones said Reserve Bank of Australia assistant governor Christopher Kent took some of the shine off the currency's rally when he suggested the jobs figure may be "overstated".

But he said the currency had been mostly well supported overnight.

"That took a little bit of steam out of the Aussie but for the most part it has been on a trend higher," Mr Jones said.

With no major economic data due, Mr Jones said the Australian dollar would take its lead from Asian equity markets and could push back above 104 US cents.

"Equity markets performed well overnight and a positive follow on in Asian equity markets today could promote another wave of Aussie-buying," he said.

"It's probably setting its sights on a move above 104 today."

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