US Dollar Regains Footing as Key Indicators Loom

The US Dollar has regained its footing after a severe sell-off in mid-July. Investors shifted their attention to the US money market and data releases, boosted by Chair Warsh's hawkish message at the Jackson Hole Symposium.

On August 31, the Dallas Fed Manufacturing Index is due, followed by several key indicators on September 1, including the ISM Manufacturing PMI, JOLTs Job Openings, Construction Spending, and the final S&P Global Manufacturing PMI. On September 2, the ADP Employment Change, weekly MBA Mortgage Applications, Factory Orders, and EIA's weekly report on US crude oil inventories are scheduled to be released.

The key event of the week will be the August Nonfarm Payrolls on September 4, along with the Unemployment Rate data. The EUR/USD has left behind four consecutive weekly advances, briefly breaching below the 1.1600 contention zone amid the generalised move higher in the US Dollar.

The RBNZ will decide on rates on September 2 (2.50% act, 2.75% exp), followed by the BoC (2.25% act, 2.25% exp). The BNM meets on September 3 (2.75% act, 2.75% exp).