Australian Dollar Falls As Unemployment Rate Rises

(RTTNews) - The Australian dollar weakened against other major currencies in the Asian session on Thursday, after the release of the most recent domestic labor market data.

Data from the Australian Bureau of Statistics (ABS) showed that the Australia's unemployment rate increased from 4.5% in July to 4.6% in August, surpassing the 4.5% market estimate. It was the highest since November 2021.

Employment in Australia increased by 39,500 to a new record of 14.84 million in August 2026, reversing a marginally revised 15,900 declines in the previous month and easily exceeding market expectations for a 20,000 gain. Employment expanded by 238,100, or 1.6 percent from last year.

The number of unemployed increased 28,200 to a five-year high of 722,900 from 694,700 in July. The participation rate edged up to 67.1 percent, above expectations and July's figure of 66.9 percent, marking the highest since April 2025.

Asian stock markets traded lower as a rebound in crude oil prices and surging bond yields renewed global inflation risks and interest rate hike concerns amid uncertainty in the resolution of the Middle East conflict and the reopening of the critical Strait of Hormuz.

The uncertainty followed comments a day earlier from U.S. President Donald Trump. Speaking before the UN General Assembly, Trump said a deal with Iran may be possible after the midterm elections but said that he may instead just decide to "annihilate the Islamic Republic." He also spoke of setting up a "large military presence" in Greenland.

In the Asian trading today, the Australian dollar fell to nearly a near 2-month low of 0.7018 against the U.S. dollar and a 1-week low of 110.81 against the yen, from yesterday's closing quotes of 0.7033 and 111.32, respectively. If the aussie extends its downtrend, it is likely to find support around 0.69 against the greenback and 109.00 against the yen.

Against the euro, the Canadian dollar and the New Zealand dollar, the aussie slipped to 8-day lows of 1.6202, 0.9902 and 1.2357 from Wednesday's closing quotes of 1.6183, 0.9919 and 1.2394, respectively. The aussie may test support near 1.63 against the euro, 0.97 against the loonie and 1.22 against the kiwi.

Looking ahead, German Ifo business climate for September is due to be released in the European session at 4:00 am ET.

In the New York session, Canada retail sales for July, average weekly earnings for July, U.S. current account data for the second quarter, U.S. weekly jobless claims data, building permits for August, new home sales for August and U.S. Kansas Fed composite index for September is slated for release.