By Abhinav Ramnarayan LONDON, May 16 (Reuters) - The Australian dollar hit a fresh five-month low on Thursday as investors came close to fully pricing in a rate cut for July on bruising domestic economic data and a swelling trade conflict between the United States and China. In Europe, the Swedish crown led losses while optimism on the euro proved short-lived with trade tensions and upcoming European elections weighing on sentiment. But it was the Aussie dollar AUD=D3 that was firmly in focus after Australian unemployment rose to its highest in eight months, cementing views its central bank may be forced to lower rates soon to stimulate the economy. The currency was down a quarter of a percent at $0.6933 in early European trade, having hit a new five-month low of $0.6893 in the Asian session.