The Australian dollar depreciated to around $0.67, sliding to its weakest levels in over two weeks as the greenback rebounded on strong US economic data.

The aussie also tracked a decline in other risk assets, with US stocks and commodities such as copper and oil facing heavy selling pressure. Domestically, stronger-than-expected job additions in Australia for June pointed to tight labor market conditions, fuelling worries about a possible interest rate hike from the Reserve Bank of Australia.

However, the unemployment rate edged up to 4.1% from 4%. Markets now see a 20% chance of a rate hike from the central bank in August, up from 12% earlier this week. The RBA is also anticipated to ease policy much later than other major central banks. Against the kiwi, the aussie is on track to advance for the fifth consecutive week amid widening divergence in monetary policy outlook between New Zealand and Australia.

Source: Trading Economics