The Chinese yuan clung to modest gains in offshore trade at 6.4757 to the dollar ahead of a monthly interest rate fixing where traders expect no change in either one-year or five-year loan prime rates.
The Australian Office of Financial Management (AOFM) is due to outline its latest borrowing plans on Friday, which could include a syndication of new bond lines.
However, strong demand at a $38 billion 10-year auction overnight and comments from US Federal Reserve officials reiterating that monetary policy is going to stay supportive seem to have once more turned the blowtorch on the greenback.
Osamu Takashima, head of G10 FX strategy at Citigroup Global Markets Japan in Tokyo, said that he remained bearish on the dollar, with dollar assets looking "expensive".
"The weaker dollar narrative and broad-based ebullience for emerging markets have been challenged earlier in the year than we forecast, which may lead to a rethink of consensus trades, at least in the week ahead," Barclays analysts said in a note.
Another negative factor for the greenback is expectations that the US Federal Reserve will keep interest rates low for an extremely long time, many analysts say.
