Aussie Slides to 11-Week Low as Employers Cut Full-Time Jobs

Updated on
  • Traders bet RBA will cut rates from record low within a year
  • Aussie “vulnerable near term” versus dollar: Westpac’s Callow

Australia's Jobless Rate Better Than Expected at 5.7%

Australia’s dollar declined to an 11-week low after a report showed employers added fewer jobs in April than economists forecast, while full-time positions shrank for the third time in four months.

The Aussie fell against most major developed peers even as the Australian Bureau of Statistics reported on Thursday that the unemployment rate unexpectedly held at 5.7 percent. The currency has fallen 1.4 percent over the past week against the greenback as traders bet the Reserve Bank of Australia will cut interest rates from a record-low 1.75 percent within 12 months. It declined for the first time in three days Wednesday as traders increased wagers of a Federal Reserve rate increase next month.

“Aussie bears will focus on a slightly sub-consensus rise in total jobs with full-time employment falling for the third time this year,” said Sean Callow, a senior foreign-exchange strategist at Westpac Banking Corp. in Sydney. The currency “remains vulnerable near term, mostly thanks to the Fed-driven dollar revival.”

Australia’s dollar fell 0.2 percent to 72.13 U.S. cents as of 12:30 p.m. in Sydney, after earlier touching 72.09, the lowest level since March 2.