AUD Supported By Labour Market Data, USD/CNH Unwinds Yesterday’s Gains

The broader USD has bounced from its Asia-Pac lows, although remains comfortably shy of Wednesday’s best levels (in BBDXY terms), with the greenback lower on the day vs. all of its G10 peers, excluding GBP.

• Firmer than expected labour market data out of Australia and a stronger lean against yuan weakness on the part of the Chinese authorities weighed on the USD overnight, adding to the pullback from the firmest levels of Wednesday’s session, before a bounce was seen into the London handover.
• USD/CNH unwound yesterday’s move higher as a result, while the AUD sits atop the G10 FX pile.
• Various desks have indicated that G10 FX volumes ran in excess of 30% above the recent averages in Asia-Pac hours, with the Australian and Chinese catalysts the driving force for activity.
• Weekly jobless claims, existing home sales and Philly Fed m’fing data out of the U.S. provide the highlights of Thursday’s broader docket, with lower tier European readings and comments from ECB Governing Council member Villeroy also slated.
• Also note that the UK will see three by-elections conducted today, with well-documented headwinds for the ruling Conservative Party noted.