Fiscal goings-on in the U.S. remained in the spotlight, with the passage of a bill extending U.S. debt limit through early December by the Senate lending support to risk appetite. The bill is expected to win approval from the House, while President Biden said he is ready to sign it into law. The increase in statutory debt ceiling sets the scene for another round of fiscal wrestling by the year-end but provides some short-term reprieve.

• The adoption of the debt-ceiling bill reduced demand for safe haven assets, dragging the yen to the bottom of G10 scoreboard. Participants awaited the first policy speech from Japanese Prime Minister Kishida.
• NZD led gains in G10 FX space after AUD/NZD failed to stage a convincing break above its 100-DMA. Across the Tasman, AUD paid little attention to the publication of the RBA's Financial Stability Report.
• USD/CNH hugged a very tight range as onshore Chinese markets reopened after a week-long holiday. The PBOC set their central USD/CNY mid-point at CNY6.4604, 15 pips above sell-side estimate. The yuan showed a muted reaction to the release of China's Caixin Services PMI, which unexpectedly returned into expansion.
• U.S. labour market report is set to steal the limelight today, while the global data docket also features Canadian jobs data, German trade balance and Norwegian GDP. ECB chief Lagarde will speak alongside U.S. Tsy Sec Yellen.