The Australian dollar has retraced some ground after falling to a three-month low following the release of Federal Reserve minutes that signalled a June US rate hike is “live.”

At 0700 AEST on Thursday, the local unit was trading at 72.30 US cents, down from 72.63 cents on Wednesday.

Overnight, the Federal Open Market Committee said it would consider raising rates pending better March quarter economic data.

“The FOMC minutes signalled that second quarter developments in labour data, growth, and inflation were the key to hiking in June,” Westpac strategist Imre Speizer said.

The greenback reacted positively to the rhetoric, pushing the Aussie down to a three-month low of 72.22 US cents.

Speizer said Thursday’s local highlight will be the employment report, where a 12,000-jobs gain is expected.

“The surprisingly hawkish FOMC saw the multi-week decline resume, targeting 72 US cents,” he said.

“However, any Australian jobs report surprise will dominate today.”

AAP

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.