The Australian dollar surged on Friday, recording its largest gain in over a year

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The Australian dollar is trading largely unchanged in early Monday morning trade in Asia, managing to hold onto the substantial gains achieved on Friday evening following the release of a weak US non-farm payrolls report for May.

“Whichever way you cut it, Friday‚Äôs US non-farm payrolls (NFP) was a shocker,” said Rodrigo Catril, currency strategist at the NAB, in his Monday morning note.

“The 38k print for May was 52k lower than the lowest forecast surveyed by Bloomberg while consensus was at 160k.

“Adding salt to the wound, the previous two months readings were revised down by a net 59k and although unemployment rate fell to 4.7% from 5%, this was due to people leaving the work force rather than an increase in hiring.”

As at 7.35am AEST, the AUD/USD buys 0.7362, up 1.85% on Friday’s opening level. Courtesy of the late bounce caused by the underwhelming jobs report, the Aussie’s five week losing streak against the US dollar also came to an end.

At 1.87%, the Aussie’s gain against the US dollar was also the largest in percentage terms since June 2, 2015.

AUD/USD Daily Chart

After a hectic Friday session, the data calendar slows sharply to start the new trading week with only a handful of second-tier domestic releases scheduled to arrive in Asia.

At 11am AEST the MI inflation gauge will be released, something that may be of more interest than usual given the increased focus on inflation in Australia at present. Then at 11.30am AEST, ANZ will release its latest job ads survey for May, something that arrives just four days before the release of Australia’s official jobs report.

Elsewhere across the region the data calendar is bare, suggesting that movements in equities, crude oil futures and the US dollar against the Japanese yen and Chinese yuan will be influential on the Aussie throughout the Asian trading session.

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