Blowout Jobs Market Report Allows AUD To Claw Back Losses

Stellar labour market data allowed the AUD to swing to gains, as the decline in Australia's unemployment rate was deeper than expected, amid above-forecast surge in both employment and participation. The Australian dollar clawed back its initial losses as a result, with the upbeat data offsetting earlier comments from RBA Gov Lowe.

• The head of Australia's central bank said that "we are still a fairway from" the point where inflation is sustainably in the target range, the threshold for raising the cash rate. The official suggested that the cash rate is not expected to rise next year, as he outlined options for ending the Reserve Bank's asset purchase programme. Markets did not take his expectations seriously, especially after the release of the upbeat jobs report.
• The yen has struggled for any topside impetus, as U.S. e-minis have operated in the green, while the Nikkei 225 has advanced after the post-FOMC impulse inspired a supportive tone on Wall Street.
• The Fed inaugurated this week's crowded central bank marathon, set to resume later today with announcements from the ECB, BoE, Norges Bank and several EM institutions (click the name of a bank to see our preview).
• Separately, flash PMI readings from the EZ as well as U.S. weekly jobless claims & industrial output take focus on the data front.