The Australian Dollar dropped more than 0.8 percent against the US dollar after the latest jobless numbers sent mixed signals about the state of the economy.
The number of job positions created was 38,500 against analysts’ expectations for a number of 10,000 while the unemployment rate rose to 6.3% up from 6.1% in the previous month.
"Australia's unemployment was slightly higher but overall not a bad set of numbers , the labour force growing was encouraging," said Raiko Shareef, currency strategist at Bank of New Zealand in Wellington.
Although the numbers were slightly on the positive side, most traders feel that data out of Australia will become less relevant in the weeks ahead and attention will focus on the US as the country gears up to lift interest rates for the first time after the onset of the financial crisis.
The Australian dollar may make a run for the US74c mark again but with uncertainty surrounding commodity prices and the Chinese economy, as well as a forecast for a healthy nonfarm payrolls number from the US, we may see the Aussie dollar drift lower and end the week on a sour note.