Currency markets were closeted in a tight range in a holiday shortened week in the United States.
Asia markets rose on Tuesday, following a lead from Wall Street, while the dollar slipped against a basket of currencies.
The dollar fell Wednesday, hitting its lowest level since October and marking its worst one-day performance in five months.
Steven Milch, chief economist at Suncorp, says wage growth has lagged, but should gain with new jobs added.
With cash rates at a record low, the RBA might not need "that much convincing" to start adjusting back to neutral rates, says Paul Bloxham of HSBC.
The Reserve Bank of Australia is unlikely to raise interest rates until wages increase, says Alan Oster, group chief economist at National Australia Bank.
Tan Teck Leng, FX analyst, UBS Wealth Management, says the market has dialed back slightly on expectations for a rate hike in Australia in late 2018 after weaker-than-expected third quarter CPI.
Wayne Gordon, Commodity, Rates, and FX Analyst, UBS, says the RBA's continue concern in the latest minutes over high household debt in Australia may be an early signal of policy action on loan-to-value ratios.
Australian Treasurer Scott Morrison says a series of measures undertaken by regulators have put household debt issues under control.
Market watchers expect as many as 125,000 jobs may have been wiped from the September nonfarm payroll due to Hurricanes Harvey and Irma.
The U.S. dollar index rose to seven-week highs on Thursday as data pointed to solid U.S. growth.
The dollar weakened slightly against the euro on Tuesday as investors squared positions after a three week greenback rally.
Asia markets were mixed in afternoon trade as the Reserve Bank of Australia kept its cash rate unchanged.
Australia's central bank left its benchmark cash rate at 1.5 percent on Tuesday in a widely expected decision.
Gareth Aird, senior economist, Commonwealth Bank, says that inflation and growth may be tamer than RBA expectations by the middle of next year, leaving the next rate hike likely in late 2018.
Andrew Ticehurst, executive director, Rate Strategist, Nomura Australia, said the RBA could wait until early 2019 before hiking rates.
Economic fundamentals across the euro zone support the euro, but Australia's uneven housing market is a risk for the Aussie, says Kelvin Tay, MD & Regional CIO, UBS Wealth Management.
Greg Matwejev, portfolio manager, Morris Capital, says the Aussie is likely heading weaker as the U.S. gets set to hike in December and the RBA holds steady at least until sometime next year.
The Reserve Bank of Australia will likely raise interest rates by the first quarter of 2018, says Tony Morriss of BAML.
Paul Bloxham, chief economist Australia, New Zealand and Global Commodities, HSBC, says a tightening labor market and higher growth could lead the RBA to hike rates in early 2018.