TOKYO- The dollar index, which measures the greenback against six major peers, was little changed at 96.269, treading water in the middle of its range over the past 2-1/2 weeks.
The JOLTS report on US job openings should provide further evidence of a tightening labor market, potentially adding fodder for bets on earlier Fed tightening, which could boost the dollar.
Money markets are currently fully priced for a quarter point rate increase by June.
The Australian dollar hit its strongest level in a week on Wednesday amid a pick-up in risk appetite on signs Omicron may be less severe than other COVID-19 variants, but still vulnerable to existing vaccines.
The Aussie rose to $0.7124 for the first time since Dec. 1, and traded at 80.80 yen, not far from Tuesday’s one-week top at 80.93.
British drugmaker GSK said on Tuesday its antibody-based COVID-19 therapy with US partner Vir Biotechnology is effective against all mutations of the new Omicron coronavirus variant.
Meanwhile, the Reserve Bank of Australia said Omicron was not expected to derail the country’s economic recovery.
Investors had already cheered comments from the weekend that cases in South Africa – where the Omicron strain was first identified – showed milder symptoms, with the top US infectious disease official, Anthony Fauci, adding “it does not look like there’s a great degree of severity” so far. – Reuters
