Australian Dollar Falls On Weak Jobs Data

(RTTNews) - The Australian dollar weakened against other major currencies in the Asian session on Thursday, after the release of Australia's weak jobs data in September.

Data from the Australian Bureau of Statistics showed that the Australia posted a seasonally adjusted unemployment rate of 4.7 percent in September. That missed forecasts for 4.6 percent and was unchanged from the August reading following a revision from 4.6 percent.

The Australian economy lost 39.3K jobs last month versus expectations for an increase of 19.6K jobs following the downwardly revised addition of 29.3K in the previous month (originally 39.5K).

The participation rate came in at 66.8 percent, missing forecasts for 67.0 percent, which would have been unchanged.

Asian markets are a sea of red, after hotter-than-expected U.S. inflation data revived bets on interest rate hikes by the US Fed that prompted a sell-off in technology and semiconductor stocks on concerns of rising borrowing costs amid heightening investments in artificial intelligence.

Crude oil prices are also spiking as the recent escalation in attacks on regional energy infrastructure and tanker traffic in the Middle East is threatening to derail a recovery in oil supply.

A container ship sank in the Strait of Hormuz on Wednesday after being hit by unidentified projectiles, while Iran-backed Houthi forces continued missile and drone attacks across Saudi Arabia. Russia also accused Ukraine of striking two oil refineries on Wednesday.

In the Asian trading today, the Australian dollar fell to a 1-week low of 0.6940 against the U.S. dollar, from yesterday's closing value of 0.6978. The aussie may test support near 0.66 region.

Against the yen and the euro, the aussie slid to 10-day lows of 109.50 and 1.655 from Wednesday's closing quotes of 110.23 and 1.6044, respectively. The aussie may test support near 108.00 against the yen and 1.63 against the euro.

Against the Canada and the New Zealand dollars, the aussie slipped to near 2-week lows of 0.9863 and 1.2349 from yesterday's closing quotes of 0.9916 and 1.2441, respectively. If the aussie extends its downtrend, it is likely to find support around 0.97 against the loonie and 1.22 against the kiwi.

Looking ahead, Eurozone industrial production for August is due to be released at 5:00 am ET in the European session.

In the New York session, Canada manufacturing and wholesale sales for August, U.S. PPI for September, weekly jobless claims data, U.S. New York Empire State manufacturing index for October, U.S. Philadelphia Fed manufacturing index for October, U.S. retail and business inventories for August, U.S. retail sales data for September and U.S. EIA crude oil data are slated for release.