Attention is now firmly on macros to round out the week. Market focus will later shift to U.S. inflation readings, including producer prices later on Thursday, and CPI on Friday, the last set of key data releases ahead of the FOMC meeting on September 15 to 16.
"I think the market feels like it's been put on notice around these numbers," Sally Auld, chief economist at National Australia Bank, said in a podcast.
"We all feel like that's going to be reasonably consequential as to how quickly or not we might see an interest rate increase from the Federal Reserve."
The European Central Bank looks set to raise interest rates on Thursday for the second time this year, and is expected to signal that it is ready to tighten further if the inflation outlook does not improve.
Meanwhile the Bank of Japan is also expected to hike interest rates to 1.25% on September 18 and then to 1.75% in the second quarter of 2027 as earlier than previously thought amid persistent concerns over broadening price pressures and yen weakness.
The U.S. inflation readings will be closely watched for clues on the Federal Reserve's next policy move amid concerns that inflation pressures remain sticky, which will leave the central bank in a difficult position, said Lloyd Chan, senior currency analyst at MUFG.
"While higher inflation may warrant tighter policy, additional rate hikes would also increase government borrowing costs at a time when fiscal deficits and debt servicing burdens are already under scrutiny."
Traders are now pricing a roughly 60% chance of a Federal Reserve rate hike this month after Friday's stronger-than-expected nonfarm payrolls report.
Elsewhere, the New Zealand dollar was 0.2% stronger at $0.5848, while the Australian dollar was flat at $0.7215.
China's offshore yuan was flat at 6.705 per dollar, hovering near its strongest level in nearly four years, after data showed China's producer and consumer price inflation rose amid higher energy costs.
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