The Australian dollar retreated against major currencies after Australia added only 3,900 jobs in the latest month, far below the 20,000 forecast, while the unemployment rate rose to 4.1% from 4.0%. The Australian Bureau of Statistics release led traders to reassess further Reserve Bank of Australia rate increases, with AUD/USD falling 0.4% to 0.6540 and the currency also weakening against the euro and the yen. Full-time employment fell by 2,300 as part-time roles rose by 6,200, and the participation rate held at 66.8%, signalling softer job quality as hiring lagged population growth. Rate futures cut the chance of a 25-basis-point RBA hike at the March meeting to 30% from 45%. The cooler labour print strengthens the case for the data-dependent central bank to hold steady, shifting focus to upcoming inflation data and global cues, including US Federal Reserve policy.