Australian shares fell on Friday's close as US investors worried that strong non-farm data due later in the day could hinder rate cuts, while weak data may deepen economic concerns.

The S&P/ASX 200 Index fell 0.6% or 54 points to close at 8,420.9.

The market is vulnerable to the job report, a soft read could see equity under pressure while a strong one could prompt markets to derisk, raising chances the Fed will hold off on easing on Dec.18, Reuters reported.

Economists estimate that nonfarm payrolls rose around 200,000 in November with the unemployment rate edging 4.2% from 4.1%, Reuters said.

"It's likely this time the key number will be the unemployment rate," said ING Regional Head of Research, Americas, Padhraic Garvey.

"If that sticks at 4.1% then we are left with a glass-half-full labor market. If it rises, then signs of underlying weakness would be more clear-cut," Garvey added.

In domestic news, Australian filled jobs climbed 1.6% to 16 million in the three months ended September, the Australian Bureau of Statistics reported.

A total of 15 out of 19 industries saw growth in filled jobs, with healthcare and social assistance and professional, scientific, and technical services leading the pack. The gains were offset by a fall in the rest of the industries, which include administrative and support services.

In company news, Rio Tinto Group (ASX:RIO) said an independent report that examined the environmental, social, and human rights impacts of the Panguna mine in Papua New Guinea since the closure of its Bougainville Copper unit in 1989 found "actual and potential" environmental impacts. Shares fell nearly 1% at market close.

Iluka Resources (ASX:ILU) secured additional financial support from the Australian government for its Eneabba rare earths refinery in Western Australia amid an increase in the expected capital cost for the project. Shares fell past 10% at market close and earlier hit their lowest since October 2020.

APA Group (ASX:APA) welcomed the Australian Energy Regulator's decision to maintain the existing light regulation regime for the South West Queensland pipeline. The energy infrastructure company's shares rose almost 2% at market close.