April Australian employment data missed forecasts, fueling doubts over further Reserve Bank of Australia tightening in June.
The Australian Dollar fell 0.25% to 0.7130 USD in European trading Friday, pressured by weaker-than-expected April jobs figures. Employers cut 18.6K positions, defying expectations for a 17.5K gain, while unemployment rose to 4.5% from 4.3%.
Markets had priced in a hawkish Reserve Bank of Australia stance, but the surprise jump in joblessness has clouded the outlook. Analysts now see a high probability the RBA will pause its tightening cycle at its June meeting, though policy remains tight.
The AUD was the weakest major currency against the Swiss Franc, reflecting broader risk aversion amid shifting rate expectations.