Aussie Dollar Fall on Unemployment Data; Yen Rises on Safe-Haven Demand By

© Reuters. – The Australian dollar fell against its U.S. counterpart following the release of jobs data in May, while the Japanese yen rose on safe-haven demand.

The pair dropped 0.3% to 0.6906 by 12:05 AM ET (04:05 GMT) after data showed the held at 5.2% last month versus an estimated 5.1%. rose 42,300 in May from April, compared with the expectation of a 16,000 gain, today’s data also showed.

The pair slipped 0.1%.

The pair was down 0.2% to 108.32. The Japanese yen attracted some safe-haven demand today as Asian stocks fell. Mass protests in Hong Kong and concerns on the trade war between China and the U.S. were cited as headwind for risk assets.

The that tracks the greenback against a basket of other currencies slipped 0.1% to 96.925.

On Wednesday, it was shown that U.S. consumer prices barely rose in May, putting more pressure on the Federal Reserve to slash interest rates this year.

Expectations for a rate cut this year also rose last week after a number of Fed officials, including Chairman Jerome Powell, hinted they were open to easing monetary policy.

The Fed is widely expected to keep rates unchanged at its meeting on June 19, but traders have been speculating on the possibility of the central bank cutting rates before the end of this year due to slowing inflation.

The pair inched up 0.1% to 6.9207.

State-controlled newspaper China Daily said Beijing might cut rates or reserve ratio requirement to combat “downside risks” amid the ongoing trade tensions with the U.S.

The news came after data on Wednesday showed China’s broad money supply and new yuan loans grew more slowly than expected in May.

Last week, PBOC chief Yi Gang said last week the central bank has “plenty of room in interest rates.”

“We have plenty of room in required reserve ratio rate, and also for the fiscal, monetary policy toolkit, I think the room for adjustment is tremendous,” Yi said.

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