Australian dollar slumps in early trade

SYDNEY — The Australian dollar fell on Friday against the U.S. greenback, backtracking on Thursday’s strong performance which was spurred by positive employment figures.

At the Asian open, one Australian dollar was buying USD75.81 cents, down from the USD76.08 cents it was trading at on Thursday.

The Australian dollar rose sharply on Thursday after the Australian Bureau of Statistics released data showing a steadily falling unemployment rate and a dramatic surge in full-time work.

Joseph Capurso, senior economist at the Commonwealth Bank, told Xinhua in a statement that the unexpectedly strong employment results released on Thursday boosted the Australian dollar temporarily, but the gains did not continue into Friday’s market open.

“The Australian dollar unwound all of yesterday’s post-labour force gains. Australia recorded very strong employment gains in May. Employment rose by 42,000 in May, which was well above expectations of a 10,000 lift,” Capurso said.

“The details of the report were all strong. Full time jobs were up, the unemployment rate fell to 5.5 percent, its lowest since 2012.”

At 9:35 (AEST), one Australian dollar was buying USD75.86 cents. XINHUA/PNA – northboundasia.com