The Australian dollar slipped modestly on Thursday after the nation's unemployment rate unexpectedly climbed in July, dampening expectations that the Reserve Bank of Australia would deliver another interest rate increase.

The Aussie dollar/US dollar pair fell as much as 0.3% to 0.7103, reversing from its pre-data level of 0.7121, as traders reassessed the likelihood of a near-term policy tightening.

Meanwhile, Australia's three-year government bond yield shed four basis points to 4.52%, compared with 4.55% before the release, reflecting a shift toward more dovish monetary policy bets in the fixed-income market.