Asian session: The dollar weakened against most of its 16 major counterparts

00:30 Australia Building Permits, m/m December +8.4% +2.3% -1.0%

00:30 Australia Building Permits, y/y December -18.9% -22.1% -24.5%

00:30 Australia Trade Balance December 1.38 1.23 1.71

The dollar weakened against most of its 16 major counterparts as Asian stocks extended a global rally ahead of U.S. data that may show an improving job market, curbing demand for refuge assets. Applications for unemployment payments in the U.S. probably fell to 371,000 in the week ended Jan. 28 from 377,000 the previous week, according to the median estimate of economists in a Bloomberg News survey. The Labor Department will release the figures today.

The 17-nation euro held yesterday’s gain versus the greenback after German Chancellor Angela Merkel said Europe must be united in protecting stability in the currency.

The Australian and New Zealand dollars maintained two-day gains as Asian equities extended a global stocks rally, spurring investor appetite for higher- yielding assets.

Australia’s currency earlier reached a five-month high after a report showed the nation’s trade surplus increased, exceeding analyst projections. The so-called Aussie and kiwi also rose after data yesterday showed manufacturing in China and the U.S. expanded, while a similar European gauge topped an initial reading. Demand for New Zealand’s dollar was limited after whole-milk powder prices fell for the fourth-straight auction, according to Fonterra Cooperative Group Ltd. (FCG).

EUR/USD: during the Asian session the pair fell.

GBP/USD: during the Asian session the pair decreased.

USD/JPY: during the Asian session the pair was under pressure.

Core-European data for Thursday includes German car registrations data and then, at 0900GMT, machine orders, which are followed by EMU PPI data at 1000GMT. Challenger Layoffs starts UK data at 1230GMT, while at 1330GMT, the weekly jobless claims are expected to fall 7,000 to 370,000 in the January 28 week after see-sawing in recent weeks. The weekly Bloomberg Comfort Index is due at 1445GMT along with the ISM-New York Business Index. Weekly EIA Natural Gas Stocks data is due at 1530GMT. Late US data then sees the 2130GMT release of M2 Money Supply.