A gauge of the dollar broke a four-day advance as softer US yields spurred position unwind ahead of the US non-farm payroll data. The Aussie climbed further after the Reserve Bank statement on monetary policy.
Bloomberg Dollar Spot Index lost 0.1%, erasing Thursday's gain; still, it's set for a 1.1% weekly advance, its third straight. The Aussie added as much as 0.6%, extending an exporter-driven gain after the central bank implied that rates may have to remain at elevated levels for longer.
"Solid ADP likely raised market expectations for NFP already, which means that the USD is vulnerable to a sell-on-rally reaction tonight," said Fiona Lim, senior currency analyst at Malayan Banking Berhad in Singapore. "We had seen a bout of strong US data for much of the past week that lifted the USD," she added.
AUD/USD advances 0.4% to 0.6578.
"AUD is rising on the back of broadly lower USD in Asia morning, RBA's SoMP which hints of keeping cash target rate higher for longer as well as China PBOC Pan's pledge to increase funding support for the Chinese property developers which could boost demand for Australia's metals," Maybank's Lim said.
Yield on 10-year Treasury bond slipped two basis points to 4.16%.
Source : Bloomberg
