The Australian dollar is higher after the release of strong US jobs figures and the news that there will be a summit between the leaders of the US and North Korea.

At 0635 AEDT on Monday, the local currency was worth 78.53 US cents, up from 77.95 US cents on Friday.

The number of jobs added the the US economy jumped by 313,000 in February, the Labor Department said, its biggest increase in more than one-and-a-half years.

BK Asset Management managing director of FX strategy Kathy Lien said the figures reinforced the positive momentum of the US economy, but a larger factor for the Australian dollar was the prospect of an easing of tension between North Korea and the US.

“Although the unemployment rate ticked up and average hourly earnings growth slowed, the most important takeaway is that these numbers are strong enough for the Federal Reserve to raise interest rates later this month,” she said.

AAP

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