The US dollar is trading higher against other major currencies as market players remain cautious ahead of a busy week of much-anticipated US economic data.
At 10.30am, the US dollar index (DXY) remained steady at 99.537 points since it opened early Tuesday in Asian trading.
The market is still digesting US President Donald Trump's decision to roll back tariffs on more than 200 food products, but it is not a surprise as it is closely linked to the cost of living issue.
A slew of data releases begin this week after being delayed by the US government shutdown, which will provide further clues for the world's largest economy. For now, the focus will be on the September Non-Farm Payrolls (NFP) report.
With the government shutdown now easing, market attention is shifting to the upcoming Fed meeting minutes and labor data that will provide clues to policy decisions in December.
Meanwhile, inflation remains sticky despite a lack of new data, while labor market indicators point to softening conditions.
Data due out on Thursday is expected to be helpful, but it only reflects the situation in September and is considered less relevant and could trigger an emotional reaction if the headline numbers are too large.
While recent private sector data has shown signs of weakness in the US economy, investors have begun to reduce expectations for a rate cut by the Fed next month.
Markets are now betting that inconsistencies in economic data could slow or thwart any further rate cuts.
Currently, the broader market is pricing in a 40% chance of a 25 basis point rate cut in December, down from more than 60% earlier this month.
