The Australian dollar was lower at noon as it slowly recovered from a "body-blow" in worse-than-expected US jobless data.

At 1200 AEST on Friday, the local currency was trading at $US0.7959/63, down from Thursday's close of $US0.8027/29.

During the domestic session, the unit moved between $US0.7904 and $US0.7963.

Commonwealth bank currency strategist Joseph Capurso said the local unit picked up half a US cent after its poor performance during Thursday's offshore session.

The domestic currency declined in value following news the US economy shed 467,000 jobs in June to a 26-year high unemployment rate of 9.5 per cent, following a downwardly revised loss of 322,000 jobs the month before, the US Department of Labor said.

With the US market closed for Friday's Independence Day holiday, investors sold the local unit to minimise risk ahead of Monday's session, he said.

"It was a body-blow and that was because of those labour statistics," Mr Capurso said.

"That's seen every currency except for the yen fall against the US dollar.

"That employment report ... was a major event ... for the market."

June's result compared with market forecasts of a loss of 365,000 jobs in June, but below expectations of a 9.6 per cent unemployment rate.

The US jobless rate was 9.4 per cent in May.

Since the US recession began in December 2007, the world's biggest economy has lost 6.5 million jobs and the unemployment rate has risen 4.6 percentage points.

The risk averse sentiment carried over to the Australian equity market, pushing it more than 50 points down in morning trade.

At 1200 AEST the benchmark S&P/ASX200 index was down 54.8 points, or 1.41 per cent, at 3822.5 points, while the broader All Ordinaries index was off 52.9 points, or 1.37 per cent, to 3822.3 points.

Mr Capurso said the local unit could reach $US0.8000 by the end of Friday's local session.

"It's been a slow grind up," he said.

"It'll probably continue to grind up to 80 US cents, but not much higher than that. Markets are going to be fairly quiet tonight because of the independence day holiday."

At 1200 AEST, the Reserve Bank of Australia's trade weighted index (TWI) was at 63.7, down from Thursday's close of 64.2.

Meanwhile, the Australian bond market was firmer at noon.

At 1200 AEST, the yield on the Commonwealth Government March 2019 bond was 5.370 per cent, down from Thursday's close of 5.415 per cent, while the yield on the April 2012 bond was at 4.322 per cent, down from 4.410 per cent.

On the Sydney Futures Exchange, the September 10-year bond futures contract price was 94.660, up from Thursday's close of 94.600, while the September three-year bond futures contract was at 95.500, up from 95.400.