Analysts at Bank of Tokyo-Mitsubishi explained that the main economic data release overnight was the latest employment report from Australia.
"The report revealed further reassuring evidence that the Australia labour market is continuing to strengthen gradually following weakness in the third quarter of last year. Employment growth over the last three months has picked up to an average of 22.3k/month compared to jobs losses of -8.6k in the previous three months."
"The unemployment rate also ticked lower by 0.1 percentage point to 5.7% and was even close to being rounded down further coming in at 5.663%. The report will provide reassurance to the RBA and supports their view that the Australian economy is likely to strengthen in the coming years.
Leading indicators appear consistent with the RBA’s outlook for a return to above trend growth as the negative terms of trade contuse to fade. Improving domestic fundamentals and the favourable external environment will continue to encourage a stronger Australian dollar in the near-term."