The USD/JPY pair dropped 0.1%, the USD/SGD pair added 0.1%, the won’s USD/KRW rose 0.3%, the yuan’s onshore USD/CNY and offshore USD/CNH pairs were muted, while the AUD/USD pair slid 0.6%

Most Asian currencies traded cautiously on Thursday. Bucking the trend, the Australian dollar dropped after an unexpected decline in the country’s jobs market. Meanwhile, the Indian rupee dropped back near record low levels amid capital outflows.

The yen’s USD/JPY pair dropped 0.1%, while the Singapore dollar’s USD/SGD added 0.1%.

The won’s USD/KRW rose 0.3%.

In China, both the yuan’s onshore USD/CNY and offshore USD/CNH pairs were muted.

The Australian Bureau of Statistics on Thursday reported a decline in employment by 21,000, with full-time positions dropping sharply, even as the unemployment rate held steady at 4.3%.

The unexpected weakness complicates the Reserve Bank of Australia’s case for a near-term rate hike, despite persistent inflationary pressures.

The Australian dollar’s AUD/USD pair slid 0.6%.

The Indian rupee also came under pressure, sliding back below the 90 per dollar mark amid renewed capital outflows and concerns over liquidity.

The USD/INR pair last traded 0.6% higher at 90.3 rupees, nearing last week’s record high of 90.5 rupees.

The US Dollar Index edged down 0.1% after dropping 0.4% after interest rate decision by the country’s central bank. US Dollar Index Futures also traded 0.1% down as of 04:32 GMT.

The US central bank lowered its benchmark interest rate by 25 basis points to a target range of 3.50-3.75%, marking its third cut this cycle.

In terms of the dot plot of individual forecasts, the median prediction is just one further rate cut in 2026, just as was the case in the previous forecasts from September, ING analysts noted.

Looking at the forecasts, there is clearly a hawkish tilt, they added.