USD Loses Shine, AUD Shows Limited Reaction To Local Jobs Data

The USD went offered and gave away some of yesterday's gains as the dust settled after the release of FOMC minutes, which suggested that some policymakers were ready to debate a tapering of bond purchases if rapid progress in economic recovery continued. The DXY ground lower, but remained way off yesterday's low in a generally headline-light Asia-Pac trade.

• AUD knee-jerked lower upon the release of Australian monthly jobs data. An unexpected downtick in the unemployment rate was underpinned by lower participation and coupled with an upward revision to the prior reading. Although consensus forecast was a 20.k increase in employment, 30.6k jobs were shed, albeit headline figure fell solely on the back of losses in part-time jobs. The Aussie's reaction was short-lived and the currency firmed a tad during the remainder of the session.
• Sterling softened as participants assessed press reports on whether the UK will be able to go ahead with its reopening plans as scheduled.
• The PBOC set its central USD/CNY mid-point at CNY6.4464, just 3 pips shy of sell-side estimates, while leaving 1-Year & 5-Year LPRs unchanged. USD/CNH stuck to a tight range.
• U.S. initial jobless claims & plenty of central bank speak from ECB's Lagarde, Lane, Villeroy & Holzmann, Riksbank's Skinsgsley & Breman, BoE's Cunliffe, Fed's Kaplan & BoC's Macklem take focus from here.