An unexpected and disappointing labor report from Australia helped to send the Aussie dollar sharply lower and resurrected investor speculation that the Reserve Bank of Australia might now be considering an interest rate cut to help stabilize the Australian economy. According to the data, the unemployment rate increased to 6% last month, above the 5.8% expected while 3,700 jobs were lost despite expectations of a moderate recovery of 15,000 new jobs.
As reported at 11:33 a.m. (JST) in Tokyo, the AUD/USD traded 1.1% lower at $0.82928, falling away from Wednesday’s 1-month high at $0.9068. The AUD/JPY lost 1.2% to trade at 91.343 Yen.
ECB Comments Sends Euro Lower
In the Eurozone, dovish comments made on Wednesday by a member of the European Central Bank resulted in the Euro’s decline. According to Benoit Coeure, an overnight deposit rate in negative territory was becoming “a very possible option” for the ECB. Though not as recognizable a name as ECB chief Mario Draghi, analysts say that since the ECB board is comprised of only six members, comments made by any one of them must not be taken lightly. Since then, the common currency has been unable to gain any traction during the Asian trading session and the EUR/USD was trading slightly higher at $1.3607 but held below Tuesday’s 2-week peak at $1.3683. The EUR/JPY edged 0.1% lower to trade at 139.27 Yen.