I would argue that there are two plausible reasons. The first being comments from the White House that labour market conditions are going to "cool off". Eamonn had the story earlier here. Considering how it seems to be the norm these days for them to comment on 'big' reports, it is certainly interesting with the US non-farm payrolls coming up later on Friday.
The second reason is perhaps the more straightforward but less comprehensible one, which is to do with month-end and positioning flows with the US jobs report also in focus. Equities are bid today so the more risk-on turn is also translating into a softer dollar on the day and we are seeing some notable developments in near-term charts as is the case for EUR/USD and AUD/USD.
Or perhaps it could be a mixture of things but either way, the charts are telling the story that the dollar momentum after Jackson Hole has locked up - at least for now. It may very well stay that way until we get to Friday before the next round of key data moves markets once again.
