Australian Dollar Falls After Employers Unexpectedly Cut Jobs

Australia’s dollar weakened for the first time in three days after a government report showed employers unexpectedly cut jobs, fueling speculation the central bank may need to cut interest rates further to shore up the economy.

Employment declined by 2,900 in April, the Bureau of Statistics said, compared with a economist forecast for a gain of 4,000. The jobless rate increased to 6.2 percent from 6.1 percent. The Reserve Bank of Australia’s bullishness on household demand and a lack of indication on future policy moves after Tuesday’s rate cut fueled a 1.7 percent, two-day rally in the currency .

Australia’s currency declined 0.2 percent to 79.56 U.S. cents at 10:38 a.m. in Tokyo.

The central bank lowered its overnight cash-rate target to a record 2 percent on May 5.