The Australian dollar fell sharply on Thursday after an unexpectedly weak employment report revived speculation that a rate cut may yet be put back on the table. The euro meanwhile continued to nurse losses after suffering a setback on dovish comments from a top European Central Bank official.
Data released on Thursday showed a net 3,700 Australian jobs were lost in January, although analysts polled by Reuters expected a rebound of 15,000 jobs. Unemployment rose to 6.0 percent in January, the highest level since July 2003 and well above forecasts of 5.8 percent.
The Australian dollar fell 1.1 percent to $0.8928, pulling back from a one-month peak of $0.9068 reached on Wednesday. It shed 1.2 percent to 91.34 yen. The Aussie also pared gains on the euro, which bounced back to A$1.5205 from a two-month trough of A$1.4977 plumbed overnight.
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