The Australian dollar slipped toward $0.62 on Thursday, ending a three-day streak of gains as investors reacted to a mixed jobs report. While Australia’s unemployment rate rose slightly to 4% in December from 3.9% in November, employment growth exceeded expectations. Looking ahead, investors are focused on Australia's fourth-quarter inflation data, due at the end of the month, which will be a key indicator ahead of the Reserve Bank of Australia's upcoming monetary policy decision in February. Markets are currently pricing in a 70% probability that the RBA will cut its 4.35% cash rate by 25 basis points next month, with a rate cut in April already fully priced in. Meanwhile, the Aussie saw a half-percent gain on Wednesday as the US dollar retreated following a surprise decline in US core inflation, fueling expectations of further Federal Reserve rate cuts this year.
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