The Australian dollar is nursing hefty losses after the US Federal Reserve sounded less dovish on future rate hikes than investors had expected, sending equities and risk assets into a spin.
The Aussie found support from a solid jobs report, idling at 71.12 US cents after losing one per cent overnight and touching a six-week trough of 70.875.
Employment rose by a surprisingly strong 37,000 in November, though all the growth was in part-time work.
The jobless rate ticked up to 5.1 per cent, but only because more people went looking for work.
"The labour market remains in good shape reflecting continued above trend growth and supportive business conditions," said Su-Lin Ong, head of Australian fixed income strategy at RBC Capital Markets.
"However, ample slack remains and suggests that sustained higher wages and inflation will be challenging ... Add to that the shift in the Fed and the odds are rising that the RBA may stay on the sidelines for longer."
The Reserve Bank of Australia (RBA) has kept rates at 1.5 per cent since mid-2016 and shows no inclination to change stance anytime soon.
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