Asian equities are trading weaker, tracking falls seen in U.S. stocks in late trading. The pair is now at 0.9867 after ending a 4-day streak of daily higher lows. Home Loans and Trade Balance indicators are due out at 1.30GMT, while a speech by Reserve Bank of Australia Governor Glenn Stevens at 0215 GMT will be the main focus of the day.
The extraordinary 1Q GDP data and strong jobs add have put in doubt the need to extend the easing cycle further. According to Emma Lawson, currency strategist at National Australia Bank, debt markets priced out expectations of further interest rate cuts, so the risk is that Stevens continues to highlight the uncertain outlook.
Australia's S&P/ASX 200 Index jumped 1.3 percent after a government report showed employers added 38,900 jobs last month. Economists had forecast no change.
The employment report came a day after data showed Australia's economy expanded twice as fast as economists had forecast in the first quarter as resource investment surged.
Federal Reserve Vice-Chairman Janet Yellen said slowing job growth and deteriorating financial-market conditions show the US economy "remains vulnerable to setbacks" and may warrant additional monetary stimulus.
Dennis Lockhart, presidenf of the Federal Reserve Bank of Atlanta, said extending Operation Twist, the central bank's stimulus program that lengthens maturities of debt on its balance sheet, is an "option on the table"
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