Dollar rises on consumer confidence

Sally Auld, a JP Morgan economists said the unit was higher in the morning session even as reports show a fall in housing finance commitments in January. This is due to investors focusing more on the strong consumer confidence as there is expectation of a firm employment report on Thursday.

''The Aussie dollar probably reacted more to (consumer confidence) than the housing finance number.

''I think it's shrugged off the housing finance numbers.''

Australian housing finance commitments for owner occupied housing fell 7.9 per cent in January, a shocking fall as economists expected it to rise 2.0 per cent.

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On another note, the Westpac-Melbourne Institute consumer index rose 0.2 per cent in March to 117.3 points.

Labour force data for February is due to be published tomorrow by ABS.

Economists expect the data to show employment figures to rise 10,000, unemployment rate to be at 5.4 per cent and participation rate at 65.3 per cent.