Asian currencies are consolidating against the dollar ahead of the upcoming U.S. non-farm payrolls report. This report is expected to influence market pricing for the Federal Reserve.

CBA’s Kristina Clifton suggests that the market may be pricing in too few interest rate hikes for the Fed. She notes that interest rate differentials are expected to move against the Australian dollar relative to its U.S. counterpart.

Currently, the Australian dollar remains little changed at US$0.7029, while the U.S. dollar remains flat at 158.45 yen, according to LSEG data.