According to Australian Bureau of Statistics figures released today, the country’s unemployment rate remained at a two year low of 4.9% in May for the third month in a row.

However, employment rose by only 7800 in May, well short of expectations of a 25,000 gain while full time employment dipped a surprising 22,000.

"It's a disappointing report," Reuters quoted Macquarie senior economist Brian Redican as saying.

"Employment has been very lacklustre for a number of months now and suggests the economy hit a turning point in the first half of 2011.

"Since the labour market is a key driver of interest rates, you'd have to wonder why policy would have to be tightened again anytime soon.

"The market may be right in betting against a hike for the rest of the year."

After early losses following another dip on Wall Street overnight, the S&P/ASX 200 index clawed back into positive territory to close 12.8 points higher at 4549.6 while the All Ordinaries gained 13 points to 4621.7.

The major miners on the Final Call watchlist closed the session mixed following another lacklustre performance by commodities on the London Metal Exchange overnight.

BHP Billiton gained A16c to $42.95, while Rio Tinto finished 19c higher at $79.79.

Aquila Resources was the biggest gainer by percentage on the Final Call watchlist, rebounding from recent losses following its dispute with Vale which caused the cancellation of a coal shipment. The company closed up 28c to $7.63.

In other mining news, Territory Resources’ largest shareholder Noble Group has responded to a takeover bid for Territory by Exxaro Resources by launching its own higher, competing takeover bid valuing the iron ore junior at around $A132.6 million.

Hong Kong-based Noble has trumped Exxaro’s offer of 46c per share by offering 50c per Territory share.

The offer comes as no surprise as Noble has been steadily building its holding since Exxaro’s offer emerged on May 23, going from 28.9% to its current holding of 32% yesterday through on-market purchases by its subsidiary Jonesville.

Territory closed the day 5c higher at 52c.

Gold continues to lose its safe haven appeal after the US dollar got a boost on speculation the Federal Reserve would not ease monetary policy further.

Spot gold was trading $US2.65 lower at $1535 an ounce at 4:31pm AEST.

Newcrest Mining finished the day A26c lower at $37.40 after announcing another cut to its full year production guidance after a power failure at its Lihir operations in Papua New Guinea.

Australia’s largest gold miner now expects full year gold production to come in at 2.7 million ounces for the year after a high voltage switchgear failure at the power station in Lihir caused the processing plant to operate at reduced capacity.