* Dollar index around 91.7
* Euro-dollar one-year implied vol near lowest since March
* COVID-19 cases spike in Australia
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
LONDON, June 28 (Reuters) - The U.S. dollar edged up on
Monday as global markets started the week with a risk-averse
tone, with currencies likely to be driven later in the week by
U.S. payrolls data, an OPEC+ meeting and end of month flows.
Some analysts attributed the lack of momentum in Asian
trading to a spike in COVID-19 cases in the region, as
Australia's most populous city, Sydney, went into lockdown.
Indonesia is battling record-high cases while a lockdown in
Malaysia is set to be extended. Thailand too announced new
restrictions in Bangkok and other provinces.
At 1131 GMT, the Australian dollar, which is seen as a
liquid proxy for risk appetite, was down around 0.2% on the day
The New Zealand dollar was down 0.4% at $0.7045.
Currency markets were generally quiet, with the U.S. dollar
index up 0.2% on the day at 91.914. Last week, it dropped
"Its quiet in part because of lower vol asset prices are
firm but theyre not trending higher or lower today. I think the
FX market is taking its lead from other asset markets and other
asset markets are quiet," said Neil Jones, head of FX sales at
Investors are looking ahead to Friday's U.S. payroll data,
as well as the OPEC+ meeting on Thursday to determine the
direction of currency markets, which are also likely to be
affected by a U.S. infrastructure bill and month-end demand for
currencies such as the dollar and euro.
Softer-than-expected inflation data last week did little to
ease concerns about the U.S. Federal Reserve dialling down its
Speculators decreased their net short dollar positions in
the latest week, according to calculations by Reuters and U.S.
Commodity Futures Trading Commission data released on Friday.
Among a raft of economic indicators this week, Friday's
payroll data is a key focus - with economists expecting an
increase of 675,000 jobs.
ING strategists wrote in a note to clients that "it will
probably take a jobs number closer to the one million mark to
shake up the US rates curve and FX markets once again."
News of optimism about a bipartisan U.S. infrastructure
agreement helped risk appetite. The infrastructure plan is
valued at $1.2 trillion over eight years, of which $579 billion
is new spending.
The euro was down around 0.2% against the dollar at $1.1912
, while euro-dollar implied volatility gauges with a
one-year maturity were close to their lowest since March 2020
The Swedish crown was up 0.2% against both the dollar and
euro, holding firm after the Swedish prime minister said he was
resigning, handing the speaker of parliament the job of finding
a new premier.
Versus the euro, it changed hands at 10.1145.
"The now former political leadership in Sweden may feel that
it is in a crisis after PM Lofven lost a confidence vote last
week, but there is no sense of suspense in the currency, which
has pushed back higher versus the Euro today despite the
situation," wrote John Hardy, head of FX strategy at Saxo Bank,
in a note to clients.
"The backdrop of strong risk sentiment and the uptick in EU
yields is SEK-supportive, but the question is whether enough
energy can build to take out the massive 10.00 area on the chart
in the near term," he added.
In cryptocurrencies, bitcoin was down 1.4% at around
$34,200. It showed no reaction to Britains financial regulator
saying that Binance, one of the worlds largest cryptocurrency
exchanges, cannot conduct any regulated activity and issuing a
warning to consumers about the platform.
(Reporting by Elizabeth Howcroft; Additional reporting by
Hideyuki Sano; Editing by Catherine Evans and Chizu Nomiyama)