Australian Dollar Drops On Disappointing Jobs Data, Fed Tightening Concerns

The Australian dollar fell against its major counterparts in the Asian session on Thursday, as downbeat Australia jobs data for October and concerns over a faster monetary policy tightening by the U.S. Federal Reserve weighed on the currency.

Data from the Australian Bureau of Statistics showed that the Australian economy lost 46,300 jobs last month, missing forecasts for an increase of50,000 following the loss of 138,000 jobs in the previous month.

The unemployment rate in Australia increased to a seasonally adjusted 5.2 percent in October, well above expectations for 4.8 percent and up from 4.6 percent in September.

Overnight data showed that U.S. consumer prices jumped at the fastest pace since 1990 in October, fueling concerns that the Fed is likely to raise rates after it ends the tapering of bond purchases by the middle of next year.

U.S. treasury yields surged and money markets are pricing in a first Fed rate hike by July.

The aussie slipped to more than 4-week lows of 0.7295 against the greenback and 0.9126 against the loonie, following its prior highs of 0.7341 and 0.9164, respectively. The aussie is seen locating support around 0.70 against the greenback and 0.90 against the loonie.

The aussie pulled back from its previous highs of 1.5648 against the euro and 83.66 against the yen, dropping to 1.5721 and 83.16, respectively. The aussie may face support around 1.62 against the euro and 80.00 against the yen.

The Australian currency slipped to 1.0357 against the kiwi soon after the data and held steady thereafter. The pair had ended Wednesday's deals at 1.0369.

Looking ahead, at 2.00 am ET, the Office for National Statistics will release UK GDP, industrial and construction output and foreign trade figures for September.

The European Central Bank's economic bulletin and the European Commission economic forecasts will be out in the European session.