Dollar Index Dips Amid Fed Hike Expectations, NFP Data Looms

The US Dollar Index (DXY) dipped 0.1% to around 99.58 at the start of the Asian trading session, following a strong Friday where it gained due to Federal Reserve Chairman Kevin Warsh's remarks that signaled the central bank remains committed to bringing inflationary pressures down to 2%. This suggests an interest rate hike in September is still possible.

The US Nonfarm Payrolls (NFP) data, scheduled for release on Friday, will be closely watched by investors as it can significantly impact Fed expectations. Oil prices rose 2% to around $84.35 due to renewed tensions between the US and Iran over the weekend.

Technical analysis suggests a neutral to slightly bearish tone in the near term, with price holding above its 20-day exponential moving average (EMA) but capped by the 50.0% Fibonacci retracement at 99.73.