THE Australian dollar has climbed to an eight-month high on the back of better than expected unemployment figures. 
Australia's official unemployment rate fell to 5.8 per cent in   February, reducing the chance of the Reserve Bank of Australia cutting rates in the near future.
Late yesterday the Aussie dollar was trading at US75.97Â¢, after hitting US76.30Â¢ earlier in the day, up from 74.65Â¢ on Wednesday.
JP Morgan economist Tom Kennedy said the lower jobless rate also takes some pressure off the Reserve Bank. "It takes a little bit of wind out of the sails for those who are calling for a near term rate cut," he said.
The US Federal Reserve's decision to keep rates on hold also pushed the Aussie dollar higher, said Nomura rate strategist Andrew Ticehurst.
"This will likely not be greeted with joy at the Reserve Bank of Australia," he said.
Mr Ticehurst said the US Federal Reserve's decision indicated it expected tepid growth in the world's largest economy.
St George senior economist Janu Chan said the US central bank indicated it will raise interest rates only twice this year, down from an earlier projection of four times, damping demand for the US dollar and pushing the Aussie dollar to its eight-month high. She said a weak global economy continues to weigh on policy makers. "It suggests they are a bit more concerned about the outlook for global growth and inflation," she said.