Strength in the Australian labor market is beginning to show signs of easing following the release of underwhelming Asian session employment data.
Australian employment unexpectedly showed a decline in December with a reduction of 14,600 employment after a jump of 58,300 in November.
In addition, the Australian Bureau of Statistics (ABS) also reported the unemployment rate remained at 3.5% from a revised reading from a 48-year low.
As a result, Australian government bond yields and the Aussie dollar slipped lower in the Asian session, retreating further from its five-month high against the US dollar.
Markets now expect the central bank to raise rates by 25 basis points or keep interest rates on hold at 3.1% at its policy meeting on February 7.
The Reserve Bank of Australia (RBA) has raised interest rates by 300 basis points since May and discussed pausing the hike at its December meeting.
