Australia's dollar climbed the most among major currencies, helped by better-than-expected employment data, while the greenback recovered from a four-month low to trade little changed.
Bloomberg's dollar index clawed back earlier losses as expectations of aggressive Federal Reserve interest-rate cuts waned following mixed US CPI data.
US 2-year yield is steady at 3.96%.
AUD/USD up 0.3% to 0.6620, as traders trimmed expectations of RBA rate cuts after data showed Australia's jobs growth surpassed all expectations in July.
Money markets now see the start of the RBA's easing cycle in December.
The US CPI "data supports the assessment that the US Fed is set to kick off its rate cutting cycle at its mid-September meeting," Peter Dragicevich, an Asia Pacific currency strategist at Corpay in Sydney, writes. A worsening of the economy or labor market notwithstanding, "a 25bp move is more likely".
USD/JPY up 0.1% to 147.45; touched 147.61 intraday.
NZD/USD up 0.1% to 0.6004.
Source: Bloomberg
