Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Dollar Up, but Near Two-Week Lows as Fed Taper Uncertainty Continues

Published 2021-08-30, 10:38 p/m
© Reuters.
GBP/USD
-
USD/JPY
-
AUD/USD
-
NZD/USD
-
USD/CNY
-
DX
-

By Gina Lee

Investing.com – The dollar was up on Tuesday morning in Asia but remained near two-week lows. Moves were mostly light as August draws to a close, with the latest U.S. jobs report, including non-farm payroll numbers, due later in the week.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.01% to 92.662 by 10:28 PM ET (2:28 AM GMT).

The USD/JPY pair inched down 0.05% to 109.87.

The AUD/USD pair inched down 0.01% to 0.7293, after peaking at $0.7317 last Friday. The NZD/USD pair was up 0.38% to 0.7025.

The USD/CNY pair inched up 0.04% to 6.4684. China released lower-than-expected economic data earlier in the day, with the manufacturing purchasing managers’ index (PMI) at 50.1 and the non-manufacturing PMI at 47.5m in August. The offshore Chinese yuan remained close to its three-week high of 6.4595 hit on Friday.

The GBP/USD pair inched up 0.05% to 1.3765.

The greenback clawed back some of its losses after U.S. Federal Reserve Chairman Jerome Powell did not provide a firm timetable for asset tapering to begin beyond hinting that it could begin within 2021.

"The jobs report, due on Friday, will be the next highlight given the focus on the Fed's asset taper. A strong reading will boost expectations that the Fed will give markets prior notice in September before a formal decision in November," Daiwa Securities senior strategist Yukio Ishizuki told Reuters.

However, numbers that are lower than expected could delay the notice to November with the formal decision following a month later.

In Europe, the consumer price index for August is due later in the day. The euro traded at $1.1799, near Monday's three-week high of $1.1810, earlier in the Asian session.

Meanwhile, the Canadian dollar was at CAD1.2610, after hitting a two-week high on Monday as strong oil prices led to a wider-than-expected Canadian current account. Oil prices, in turn, climbed to three-week highs, with re-start timelines for platforms, refineries and pipelines in the U.S. Gulf Coast remaining uncertain after Hurricane Ida blew through the region over the weekend.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.