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Forex - Aussie dollar weakens after disappointing jobs data

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Shutterstock photo - - The Australian dollar weakened after diappointing jobs data on Thursday.

In Australia, employment data for May showed a drop of 4,800 jobs, compared to expectation of 10,000 added, while the particpation rate fell to 64.6%, compared to 64.7% expected and the unemployment rate dropped to 5.8% from 5.9% forecast.

Earlier MI Inflation Expectations for June came in at 4.4%, compared to 4.0% in May for the trimmed mean.

AUD/USD traded at 0.9375, down 0.07%, after the data.

NZD/USD traded at 0.8653, up 1.38%, after the Reserve Bank of New Zealand hiked its Official Cash Rate 25 basis points to 3.25%, projecting a slightly more gradual run of increases than anticipated in March because of the strong currency.

The high exchange rate is still having an unexpectedly strong downward pressure on inflation, Reserve Bank governor Graeme Wheeler said Thursday. "Headline inflation remains moderate and tradable inflation is expected to be low for some time," he said.

Japanese data saw machine tool orders for April fall 9.1%, less that the 11.9% drop expected.

USD/JPY traded flat at 102.07%.

Overnight, the pound moved higher against the dollar after data revealed fewer individuals received unemployment assistance in May than markets were anticipating.

The claimant count, or number of people receiving jobless benefits fell by 27,400 in May, beating for a for a decline of 25,000 people. April's figure was revised to a drop of 28,400 from 25,100.

The data added to the view that the Bank of England will raise interest rates ahead of other central banks as the economic recovery continues to gather momentum, which gave the pound an edge over the greenback.

GBP/USD traded at 1.6799, up 0.07%.

Meanwhile in the U.S., Treasury yields continued to climb on Wednesday, though they came off earlier highs, as markets prepped for the possibility that the Federal Reserve may hike interest rates sooner than once expected.

Fed officials have said rate hikes will come sometime after the U.S. central bank concludes its bond-buying program, which is seen taking place this year.

However, uncertainty as to how much time will elapse between the end of Fed stimulus programs and a decision to raise benchmark interest rates boosted the dollar over the euro, as many feel the economy continues to shake off the dust from rough winter weather and pick up its pace of recovery, which could prompt the U.S. central bank to act.

On Thursday, the U.S. is to release the weekly report on initial jobless claims, in addition to data on retail sales and import prices.

Bank of England Governor Mark Carney is to speak at an event in London. offers an extensive set of professional tools for the financial markets.

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