The Australian Dollar (AUD) has been the top G10 performer overnight, boosted by a robust December jobs report showing 65.2k positions added and unemployment falling to 4.1%, alongside improved global risk sentiment, MUFG's FX analyst Lee Hardman reports.

The Australian Dollar (AUD) is outperforming, with AUD/USD breaking above 0.6800 after a robust December jobs report showing 65.2k positions added and the unemployment rate falling to 4.1%, BBH FX analysts report, BBH FX analysts report.

US Dollar (USD) recovered some of this week’s losses mostly versus Japanese Yen (JPY) and Euro (EUR). Cyclical-sensitive currencies are outperforming, led by Australian Dollar (AUD). Global equity markets are up, bond markets are steady, and gold is firm near record highs.

The US Dollar is trading higher across the board on Thursday, favoured by the de-escalation of the EU-US tensions.

AUD/USD has broken out of its recent range, with support around 0.6650–0.6720 holding the key for continued upward momentum, Société Générale's FX analysts note.

New Zealand’s fourth-quarter CPI is expected to hold at 3.0% year-on-year, slightly above the RBNZ’s projection and potentially reinforcing hawkish speculation, ING's FX analyst Francesco Pesole notes.

US Dollar (USD) is likely to trade in a range of 157.90/158.80. In the longer run, USD appears to have entered a consolidation phase between 157.10 and 159.10, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.

While strong Australian jobs data has boosted rate-hike pricing, expectations may be running ahead of inflation reality, leaving AUD/USD vulnerable in the near term even as AUD holds up well on the crosses, ING's FX analyst Francesco Pesole notes.

The Euro reversal against the British Pound seen on Wednesday, found support at a previous resistance area near 0.8790, and the pair is picking up on Thursday, favoured by an improved market sentiment, returning to levels past 0.8700 with bulls aiming for the resistance area at 0.8745.

EUR/USD is trading a few pips below the 1.1700 level at the time of writing on Thursday, practically flat on the daily chart, after pulling back from highs near 1.1770 on Tuesday.

Pound Sterling (GBP) is likely to range-trade between 1.3400 and 1.3460. In the longer run, the near-term bias is tilted to the upside, but GBP may not break above 1.3505, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.

The USD/CAD pair struggles to capitalize on the overnight bounce from the 1.3785 region, or the 50% Fibonacci retracement level of the December-January upswing, and trades with a negative bias for the fourth straight day on Thursday.

The Pound Sterling (GBP) trades with caution against its major currency peers, consolidating around 1.3430 against the US Dollar (USD) during the European trading session on Thursday.

The AUD/USD pair extends its winning streak for the fourth trading day on Thursday, trading 0.6% higher to near 0.6810 during the European trading session. The Aussie pair gains further as the Australian Dollar (AUD) outperforms its peers, following the release of the employment data for December.

EUR/USD has fallen back below 1.170, driven largely by renewed dollar strength as geopolitical tariff risks ease and USD bulls re-emerge, ING's FX analyst Francesco Pesole notes.

Here is what you need to know on Thursday, January 22:

Silver price (XAG/USD) recovers losses from the previous two consecutive days, trading around $94.20 per troy ounce during the European hours on Thursday.

NZD/USD extends its winning streak for the fifth consecutive session, trading around 0.5860 during the early European hours on Thursday.

The GBP/JPY pair trades 0.22% higher to near 213.10 at the start of the European trading session on Thursday. The pair gains as the Japanese Yen (JPY) underperforms across the board ahead of the monetary policy announcement by the Bank of Japan (BoJ) on Thursday.

The EUR/JPY cross attracts some buyers near 185.45 during the early European trading hours on Thursday. The Japanese Yen (JPY) strengthens against the Euro (EUR) on improved sentiment.

The USD/CHF pair clings to Wednesday’s recovery move near 0.7950 during the late Asian trading session on Thursday.

The GBP/USD pair gains ground to near 1.3435 during the early European session on Tuesday. The Pound Sterling (GBP) edges higher against the US Dollar (USD) as UK inflation rose more than expected in December. Markets might turn cautious later in the day ahead of a slew of US economic data. 

The Indian Rupee (INR) holds onto losses near its all-time low against the US Dollar (USD) in the opening session on Thursday.

EUR/USD edges higher after registering modest losses in the previous session, trading around 1.1700 during the Asian hours on Thursday. The technical analysis of the daily chart shows that the pair remains within the descending channel pattern, suggesting an ongoing bearish bias.

USD/CAD remains in the negative territory for the fourth consecutive session, trading around 1.3830 during the Asian hours on Thursday.

Silver price (XAG/USD) tumbles to near $91.80 during the Asian trading hours on Thursday. The white metal falls after reaching record highs as traders react to easing tariff threats and profit booking.

The Japanese Yen (JPY) is seen oscillating in a narrow trading band against its American counterpart during the Asian session on Thursday amid mixed fundamental cues.

The NZD/USD pair gains momentum to around 0.5850 during the Asian trading hours on Thursday. The New Zealand Dollar (NZD) edges higher against the Greenback amid risk-on sentiment as US President Donald Trump touts a Greenland deal.

The Australian Dollar advances against the US Dollar (USD) on Thursday, following the seasonally adjusted employment data from Australia, which strengthens expectations of tighter monetary policy from the Reserve Bank of Australia (RBA)

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Thursday at 7.0019 compared to the previous day's fix of 7.0014 and 6.9697 Reuters estimate.