The Australian dollar deepens losses to a weekly low due to a collapse in Australian jobs

The Australian dollar fell in the Asian market on Thursday against a basket of global currencies, deepening its losses for the second consecutive day against its U.S. counterpart, recording its lowest level in a week, following the release of grim Australian labor market data.

The data showed an unexpected rise in the unemployment rate in September, with job losses falling at the steepest pace since February 2025, which reduces pressure on the Reserve Bank of Australia's monetary policy makers and sharply lowers the likelihood of an Australian interest rate hike in November.

Price view • Australian dollar exchange rate today: The Australian dollar fell against its U.S. counterpart by about 0.4% to (0.6945), its lowest level since October 8, compared to the opening rate of (0.6971) today, while it reached a high of (0.6980).

The data also showed a net job loss of 39.3 thousand positions in September, the steepest decline in job creation since February 2025, which was worse than market expectations that had projected an addition of about 19.6 thousand jobs. In August, jobs added about 29.3 thousand positions, after the figure was revised downward from an addition of about 39.5 thousand.

The Australian economy released the number of new jobs in the country on Thursday morning, indicating a loss of 39.3 thousand jobs in September, worse than market expectations of an addition of 19.6 thousand jobs, and revised the previous reading from a loss of 39.5 thousand jobs to a loss of 29.3 thousand jobs in August.

U.S. stock indices fell sharply at the close of Wednesday's trading after U.S. inflation data came in higher than expected, raising fears that the Federal Reserve might resort to further interest rate hikes, and sparking a strong sell-off in shares of Oracle, CoreWave, and other AI-sensitive companies exposed to higher borrowing costs.