The Australian dollar shed half a cent to $1.0068 in the wake of the jobs report, and seemed destined to test support around $1.0055, if not at $1.0002.
"The market is long and today showed signs of looking sated," said Robert Rennie, chief currency strategist at Westpac Institutional Bank. The currency jumped back above parity over a week ago but has been unable to extend the rally past $1.0200.
"I question where the next piece of good news is going to take us. I would not be surprised to see a move to sub-parity in the next few days."
The Aussie might find support from Reserve Bank of Australia (RBA) Governor Glenn Stevens who testifies to parliament on Friday and is likely to stay upbeat on the economic outlook.
It had showed a remarkable resilience earlier this week to a 25 basis point rate hike by China's central bank. It is still one of the top performing currencies, boasting a formidable 15 percent gain in the past 12 months.
Commodity prices are also moving in Australia's favour with iron ore, its top export, hitting a record high, as did copper. All this point to a big rise in Australia's terms of trade this quarter.
The domestic data also looked fine with employment rising 24,000 in January to beat forecasts of a 15,000 gain despite massive flooding in Queensland. The jobless rate also stayed at a two-year low of 5.0 percent, giving proof of the underlying strength in the economy.
But the data were not so strong as to challenge expectations the Reserve Bank of Australia (RBA) will likely be on hold for a few months more.
Interbank futures imply around a one-in-three chance of a hike in the 4.75 percent cash rate by June and a single move is fully priced by October.
Markets continue to price in total tightening of around 41 basis points in the next 12 months, though that is up from 20 basis points a couple of weeks ago.
Australian bond futures tracked US Treasuries higher after a well received 10-year auction on Wednesday. The three-year contract up 0.03 points at 94.66 and the 10-year contract also up 0.045 points 94.275.
The euro held firm broadly in Asia as central banks switched currencies, buying euro with dollars bought during intervention.
The euro nudged higher against the Aussie to around A$1.3592, and held firm on the kiwi at around $1.7780.
Across the Tasman Sea, the New Zealand dollar nudged down to around $0.7710/20.
"All up, we continue to look for short-term NZ dollar rallies to fade ahead of $0.7800/50. Initial support is eyed on dips towards $0.7680," said BNZ currency strategist Mike Jones.
The pace of data picks up next week with retail sales for the fourth quarter and January due, along with producer prices.
However, none of the data is likely to change expectations that interest rates will not head higher until much later in the year, possibly even September.
The kiwi edged higher against the Aussie to NZ$1.3070 after the Australian jobs data. Support for the pair is seen at NZ$1.3030 with resistance at NZ$1.3215 range.
New Zealand government debt closed a shade firmer at the long end of the yield curve.