The start of the Asian session saw the US dollar trade steady after depreciating at the end of last Friday's trading which may have been influenced by profit taking activities by investors.
Fundamentally the US dollar is still strengthening, supported by the hawkish stance of the Federal Reserve (Fed) to tackle inflation and concerns over the recession supporting the currency as a safe-haven.
However, the movement of the greenback dollar is expected to be limited on Monday amid the closure of banks and bond markets in conjunction with the Independence Day holiday in the United States.
Being the main focus of the market this week will certainly be the US NFP jobs report to be published on Friday and the minutes of the FOMC meeting early Thursday morning.
However, some data such as the US ADP private employment and the ISM services PMI index will be focused first to make an early indication to the NFP.
ISM’s manufacturing PMI data released last week showed a decline in manufacturing activity in June, prompting investors to place gloomy expectations for the services sector to be released on Wednesday.
Turning to Asian currencies, the Aussie dollar traded hovering at a two -year low ahead of the Reserve Bank of Australia (RBA) policy meeting on Tuesday which is expected to raise interest rates by 50 basis points again.
Meanwhile, the euro traded around its five -year weakest against the USD, failing to rise higher following European Zone inflation data which continued to hit new records in June.
