______________AUSTRALIAN CREDIT/FOREX SNAPSHOT__________________

FOREIGN EXCHANGE AT 0200 GMT (against previous Sydney close) 0.7812/14 (0.7838/43) 1.2444/63 (1.2508/21) 73.00/04 (73.82/88) 93.39/41 (94.17/20) 0.5618/21 (0.5652/55) 1.3900/05(1.3869/71)

DEBT FUTURES CASH YIELDS

90-DAY BILL (SEP) 96.90 (-0.02) 3.11(3.12)

3-YR BOND (SEP) 95.70 (+0.07) 4.15(4.24)

10-YR BOND (SEP) 94.815 (+0.08) 5.34(5.43)

3/10 SPREAD +0.885 (+0.885) AUST/US 10-YR SPREAD +202(+200)

S&P/ASX 200 3758.2 (3767.9) US10-YR 3.33(3.43)

----------------------------July 9------------------------------

DATA: Employment fell 21,400 in June, much as expected. The

jobless rate rose to a near six-year high of 5.8 percent, but

that was short of the 5.9 percent predicted

----------------------------------------------------------------

* Investors showed some relief Australia's labour market was

not weakening at a faster pace, paring back bets of more rate

cuts this year and marking up the chance of a hike in a year's

time, though the data offered the Aussie dollar scant support.

* Bill futures extended losses to fall 0.02 points to

96.89, from 96.91 before the data. Money market rates show investors pricing in 24 percent chance of a 25

basis-point rate cut in August, down from 32 percent.

* One-year Australian interest rate swaps jumped to

a high of 3.265 percent, from 3.22 before the data, but then

pulled back to 3.24 percent as uncertainty over a world economic

rebound and a brewing spat between Australia and its top trading

partner China weighed.

* Aussie was subdued on the data, with fragile global

sentiment also keeping the tone soft. Local dollar was under

pressure at 72.86 yen, from 73.82 yen seen here late

Wednesday.

* Aussie also defensive on the U.S. dollar at

$0.7808, compared to Wednesday's $0.7836.

* Some analysts are becoming more confident Australia's

jobless rate may not hit a high of 8.5 percent by mid 2010, as

forecast by the government. A more resilient labour market may

ease pressure on Reserve Bank of Australia to further cut rates.

* The RBA kept rates unchanged at a record low 3 percent at

its monthly policy meeting on Tuesday, and held out hope for a

pick-up in economic activity both at home and abroad.

* Investor fears about China's demand for Australian

resources cast a shadow over Aussie after a report said a Chinese

customer had cancelled a shipment of Australian coal while it was

at sea.

* That came as strained ties between Australia and China took

another knock, with Australia saying Chinese officials had

detained an employee of Australian-listed miner Rio Tinto Ltd's on suspicion of espionage.

* Bond futures jumped as investors sought safer assets.

Three-year bond futures rose 0.07 points to 95.70, after

climbing to a 1-month high of 95.77. Ten-year bond futures added 0.08 points to 94.815, after hitting a 1-1/2-month

high of 94.85.

(Reporting by Koh Gui Qing)

((Guiqing.Koh@Reuters.com; Reuters Messaging;

guiqing.koh.reuters.com@reuters.net; +61 2 9373 1821))

Keywords: MARKETS AUSTRALIA BONDS/FOREX

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