At 07:00 (AEST), the Australian dollar was buying 68.91 U.S. cents, down from 69.30 U.S. cents.
Better than expected U.S. economic data helped the greenback to rally against most major currencies while expectations for an interest rate cut by the Reserve Bank of Australia (RBA) kept the Aussie under pressure.
"The uptick in the unemployment rate means that, along with the additional weakening in forward looking indicators, the two necessary conditions for the RBA to cut have been met or we are now very close to meeting them," National Australia Bank senior FX strategist Rodrigo Catril said.
At 09:30 (AEST), the local unit was buying 68.92 U.S. cents.
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