The Australian dollar slipped on Thursday after data showed the largest-ever drop in jobs in April as much of the economy was locked down to tackle the coronavirus, though dogged demand for the country's bonds limited the losses.
Employment fell by a staggering 594,300 in April, above already grim forecasts of a 575,000 drop. Investors were surprised by the 6.2% rise in the jobless rate, when analysts had tipped 8.3%, but only because of quirks in the way unemployment is classified.
Without those, the jobless rate would have hit 9.6%. Analysts noted that total hours worked dived a record 9% in the month, pointing to a steep fall in economic output.
The bond market remained upbeat following a very strong sale of new debt on Wednesday, with the 10-year future rising 5 ticks to 99.1100. The record sale of A$19 billion ($12.26 billion) in a 2030 bond drew a A$53.5 billion mountain of bids. Of the total sold, 38% went to banks and almost 37% to fund managers, with nearly 20% taken by hedge funds pointing to solid interest from offshore.
Across the Tasman, the New Zealand dollar was nursing a few bruises at $0.5986 after shedding 1.3% on Wednesday when the Reserve Bank of New Zealand (RBNZ) flagged the risk of negative interest rates.
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