"At this point, we remain sceptical that there will be any big-bang stimulus package forthcoming," said Alec Jin, investment director of Asian equities at abrdn.
The positive U.S. narrative also faces some crucial tests this week, with several closely watched jobs reports due, culminating with monthly payrolls on Friday. The Australian dollar was set for its sharpest one-day drop in a month, falling 1% to $0.6652 after the Reserve Bank of AustraliaThe U.S. dollar index - which measures the currency against six major peers - rose as high as 102.07 for the first time since July 10.
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