THE Australian dollar retreated today in line with broad strength across Asia for the US unit. The Aussie was among the worst performing Group of 10 currencies - unwinding the gains that took it to a one-month high in New York on Monday. At 5pm (AEST) the dollar was around US89.22c compared with yesterday's US98.38c. It traded as high as US90.88c on Monday, its highest point since December 11. Some of the strength in the US dollar was attributed by traders to comments by US Federal Reserve officials backing further reductions in bond buying. Federal Reserve Bank of Dallas President Richard Fisher said overnight he wanted to signal to markets he will vote to continue reducing bond buying unless there is a dramatic change to the trajectory of the real economy. "As far as my vote is concerned we're going to continue down this [tapering] path," Mr Fisher said. The Fed's rate-setting committee "expects to take continued measured steps ... I'm going to push on that," he said. There have been similar comments from other Fed officials considered to be policy centrists, Westpac currency strategist Sean Callow said in Sydney. While the Australian dollar has moved with the international tide the focus will return to the domestic economy on Thursday. December employment data is expected to show 10,000 jobs were added over the month with the unemployment rate unchanged at 5.8 per cent, according to a survey of economists by The Wall Street Journal. The data is often volatile and subsequent big moves in the Aussie can't be ruled out. If the unemployment rate rises traders will begin to price in interest-rate cuts. Over the past month bets on another rate cut have eased in line with strong economic reports - especially from the housing sector. The Reserve Bank of Australia has left the door open for cuts in 2014. It lowered its cash rate target to a record 2.50 per cent in August last year for an eighth cut in two years.

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