The risk -sensitive currency, the Aussie dollar eased lower in the Asian session, failing to sustain the strengthening recorded following strong Australian jobs data in December.
During the New York session, the Wall Street market recorded a decline towards the end of trading, with shares of the Dow Jones index slipped more than 300 points and the S&P 500 closed below the 4,500 level for the first time since October 2021.
The decline was also followed by other major currencies such as the kiwi dollar, pound, euro and loonie which each showed depreciation.
US 10 -year bond yields remained stable around two -year highs despite a slight decline of 1.81%, which gave the yen an opportunity to appreciate against other major rivals.
The increase in U.S. bond yields has been driven by market expectations that the Federal Reserve (Fed) will tighten monetary policy at a faster pace expected in March.
While the US dollar was also stable after gaining strength to rise in the previous session, with the dollar index trading at 95.75 in the Asian session.
Investors are now more cautious ahead of this week’s trading close and next week’s FOMC policy meeting for the next policy setting.
Earlier, unemployment claims data released during the New York session showed readings fell short of expectations for a record 227,000 claims, with an increase of 286,000 last week from 231,000 previously.
