The Australian stockmarket was slightly higher at Thursday noon, after a strong employment figures from the Australia Bureau of Statistics overshot expectations, boosting banks and retailers.

Australian employment surged past forecasts in September as firms hired a massive 55,800 full-time workers, reviving the risk of a resumption of rate hikes and lifting the local dollar to a two-year peak. The jobless rate held steady at 5.1 percent.

At 1205 AEDT, the benchmark S&P/ASX200 index increased 0.14 per cent to 4,693.6 points and the broader All Ordinaries added 0.19 per cent to 4,747.2 points.

The market started out lower, dragged back by banks on profit taking after the index had its biggest daily rally in 5 weeks on Wednesday, rising 1.7 percent.

By noon, the big four banks were mixed, with ANZ Banking Group adding 0.2 per cent to $24.12, Commonwealth Bank of Australia losing 0.74 per cent to $51.45, National Australia Bank flat at $25.89 and Westpac Banking Corp falling 0.42 per cent to $23.32.

Investment bank Macquarie Group fell 0.7 per cent to $36.40.

Among the retailers, Harvey Norman improved 0.51 per cent to $3.87 and JB Hi-Fi jumped 1.94 per cent to $21.46.

Department store David Jones increased 0.4 per cent to $5, and rival Myer looked up 0.25 per cent to $3.91.

Woolworths put in 0.16 per cent to $29.90, while Coles owner Wesfarmers shed 0.2 per cent to $33.76.

Blue chip Telstra lifted 0.37 per cent to $2.65. National carrier Qantas climbed 1.04 per cent to $2.91.

"Yesterday we had a huge day. We're definitely at a cross roads and we need some guidance. We're not sure who to believe," said Markus Mueller, director at RBS Morgans Reynolds Equities.

"We're not sure if the US is more important, or China, or if the US has a soft spot if it's going to cause a headache again like we had two years ago. That's the big problem," he said.

With Reuters