UK jobless claims surged 44.2 thousand in February, the worst reading since July 2024, and widely missing estimates of a 7.9 thousand increase, and compared to January's 22.0 thousand increase. 

UK unemployment for three months ending January steadied at 4.4% as expected, same as the previous reading. 

The Australian dollar fell in European trade on Thursday against main rivals, extending losses for the third straight session against the US dollar and backing off three-week highs on profit-taking.

It comes amid mounting pressures following grim Australian labor data, which showed the economy lost jobs in February for the first time in a year, boosting the odds of an RBA rate cut in April.

The Price

The AUD/USD pair fell 0.45% today to 0.6329, with a session-high at 0.6364.

Aussie lost 0.1% yesterday against the dollar, marking the second loss in a row on profit-taking away from three-week highs at 63.91..

Australian Labor 

Australia’s economy lost 52.8 thousand new jobs in February, the first such drop since March 2024,  and missing estimates of an addition of 30.8 thousand new jobs. 

Australia’s unemployment rate steadied at 4.1% in February as expected, same as January.

Australian Rates

Following the data, the odds of a 0.25% interest rate cut by the Reserve Bank of Australia in April rose to 30%.

The odds of such a cut in May rose from 70% to 80%.

The RBA cut interest rates last month for the first time in four days but warned that further rate cuts might be delayed due to the sudden strength of the labor market, which could boost inflation.

Australia’s economy lost 52.8 thousand new jobs in February, the first such drop since March 2024,  and missing estimates of an addition of 30.8 thousand new jobs.