Australian Dollar Falls As Weak Jobs Data Spurs Rate Cut Hopes

(RTTNews) - The Australian dollar weakened against other major currencies in the Asian session on Thursday, as the unexpected rise in unemployment rate led to a speculation of an early rate cut by the Reserve Bank of Australia (RBA). Data from the Australian Bureau of Statistics showed that the jobless rate in Australia came in at a seasonally adjusted 4.3 percent in June. That was above expectations for 4.1 percent, which would have been unchanged.

The Australian economy added 2,000 jobs last month, well shy of forecasts for a gain of 21,000 following the loss of 2,500 jobs in May.

The participation rate was 67.1 percent, topping forecasts for 67.0 percent, which would have been unchanged.

Crude oil prices dropped after the Energy Information Administration said gasoline inventories increased by 3.4 million barrels last week and are slightly above the five-year average for this time of year. West Texas Intermediate crude for August delivery fell $0.14 to settle at $65.38 per barrel.

In the Asian trading session, the Australian dollar fell to a 1-week low of 1.7947 against the euro and a 6-day low of 96.11 against the yen, from yesterday's closing quotes of 1.7839 and 96.53, respectively. If the aussie extends its downtrend, it is likely to find support around 1.81 against the euro and 89.00 against the yen.

Against the U.S. and the Canadian dollars, the aussie slid to nearly a 1-month low of 0.6473 and a 9-day low of 0.8880 from Wednesday's closing quotes of 0.6523 and 0.8928, respectively. The aussie may test support near 0.63 against the greenback and 0.87 against the loonie.

The aussie dropped to yesterday's low of 1.0939 against the NZ dollar, from yesterday's closing value of 1.0973. On the downside, 1.07 is seen as the next support level for the aussie.

Meanwhile, the other antipodean currency or the NZ dollar also traded lower in the Asian session.

In other economic news, data from Statistic NZ showed that the food prices in New Zealand increased by 4.6 percent in the year ending June 2025, a modest increase from 4.4 percent in May. On a monthly basis, food prices climbed 1.2 percent in June, following a 0.5 percent rise in May.

The NZ dollar fell to 87.78 against the yen and 1.9650 against the euro, from yesterday's closing quotes of 87.97 and 1.9575, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.58 against the yen and 85.00 against the euro.

Against the U.S. dollar, the kiwi slid to nearly a 1-month low of 0.5912 from Wednesday's closing value of 1.9575. On the downside, 1.98 is seen as the next support level for the kiwi.

Looking ahead, U.S. weekly jobless claims data, retail sales data, export and import prices for June, U.S. NAHB housing market index for July, U.S. business inventories for May and U.S. Philly Fed business conditions for July are slated for release in the New York session.