(MENAFN- FxPro) The Australian dollar weakened on Thursday as the economy added a solid boost of jobs in July, but more people looked for work, creating mixed picture on employment with the jobless rate also ticking higher.
AUD/USD traded at 0.7344, up 0.16%, while USD/JPY changed hands at 124.81, down 0.05%.
Australia reported a sharp gain of 38,500 jobs in July, beating an expected 10,000 increase, while the unemployment rate ticked higher to 6.3% from the 6.0% seen and the participation rate jumped to 65.1% from 64.8%.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, down 0.08% at 97.90.
Overnight, the dollar regained ground against the other major currencies on Wednesday, after data showed that service sector activity in the U.S. grew at the fastest pace since August 2005 in July.
The Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 60.3 last month from 56.0 in June, above forecasts for a reading of 56.2.
The data came after payroll processing firm ADP said non-farm private employment rose 185,000 last month, below expectations for an increase of 215,000. The economy created 229,000 jobs in June, whose figure was downwardly revised from a previously reported increase of 237,000.
Separately, the U.S. Bureau of Economic Analysis said that the trade deficit widened to $43.84 billion in June from $40.94 billion in May, whose figure was revised from a previously reported deficit of $40.7 billion.
Analysts had expected the U.S. trade deficit to widen to $42.8 billion in June.
Investors were now turning their attention to the upcoming U.S. jobs report for July, which could reinforce expectations for higher interest rates.
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