The Australian dollar dropped against its U.S. counterpart on Thursday after a report showing unemployment unexpectedly soared in January, raising rate cut bets.
The jobless rate climbed to 6 percent last month, the highest since September, compared to both prior and excepted readings of 5.8 percent.
Employment dropped 7,900 from December, where full-time jobs plunged 40,600, the most since 2013.
RBA minutes for the policy meeting held on February 2 signaled that policymakers will monitor the robust jobs growth is sustained.
The RBA left its interest rate unchanged this month, but will cut the rate to 1.5 percent this year, Goldman Sachs analyst said.
The RBA will slash rates from 2 percent in the period between May and July, Goldman Sachs analysts predicted.
Data from China released on Thursday added to concerns, as it signaled a lower than forecast rise in annual CPI for January and the annual PPI posted its 47th straight month of decline.
The dollar index retreated to 96.77, where it faced resistance on Wednesday after the Fed minutes signaled policymakers discussed “altering their earlier views of the appropriate path for the target range for the federal funds rate.”
Later in the day, the U.S. will release its Philadelphia Fed manufacturing index and unemployment claims data.
