SYDNEY/WELLINGTON (Reuters) - The Australian and New Zealand dollars came off one-month lows on Thursday as their U.S. counterpart weakened after minutes of the Federal Reserve's last meeting showed policymakers were worried by recent softness in inflation.
The Australian dollar <AUD=D4> held at $0.7937, rising above a trough of $0.7816 touched on Wednesday. The Aussie went as low as $0.7808 earlier this week, a level not seen since July 18.
The New Zealand dollar <NZD=D4> climbed to $0.7320 after sinking to a one-month low of $0.7224 the previous day. The kiwi faces stiff chart resistance around $0.7360.
The readout of the July 25-26 meeting showed some members called for halting interest rate hikes until it was clear the inflation trend was transitory, but it also indicated the Fed was poised to begin reducing its $4.2 trillion portfolio of bonds. [nL2N1L21DW]
"Cracks appear to be developing at the Federal Reserve Board over when to raise interest rates as the market reads the board's comments on inflation to be extremely dovish," said Stephen Innes, head of trading at OANDA.
The antipodean currencies were also bouyed by a price surge in metals on expectations that China's reform of its metals industry will curb supply against a background of robust demand. Copper and aluminium prices surged to their highest since late 2014 while zinc hit a high not seem since 2007 <MET/L>.
Data out on Thursday showed Australia's jobless rate edged lower to 5.6 percent in July from an upwardly revised 5.7 percent as 27,900 new jobs were added. [nL4N1L31J9]
The gain in employment was solely due to an increase in part-time work and economists said the data would do little to change the Reserve Bank of Australia's (RBA) neutral policy stance for now.
UBS economist George Tharenou said the jobless rate was still too high for a sharp lift in wages, but employment would need to "stay solid and lift wages to avoid slower consumption amid a looming housing correction and consumer gloom".
"Indeed, faster jobs (growth) in recent years failed to translate to wages... we still don't see enough evidence yet for the RBA to change their policy stance."
New Zealand government bonds <0#NZTSY=> gained, sending yields 2.5 basis points lower.
Australian government bond futures rose, with the three-year bond contract <YTTc1> up 2 ticks at 98.040. The 10-year contract <YTCc1> climbed 3 ticks to 97.3700.
