Dollar Climbs for Fifth Day as US Traders Return From Holiday
The dollar extended its rebound to a fifth straight session as US traders readied their return from a holiday to a week packed with economic data.
The greenback gained against most of its Group-of-10 peers on Tuesday and the Bloomberg Dollar Spot Index inched up 0.1%. Australia's dollar underperformed as iron-ore futures dropped and a key input for gross domestic product fell short of economist estimates.
Investors awaited US economic data including some on manufacturing due Tuesday, services Thursday and key non-farm payroll figures Friday to see if market pricing for Federal Reserve policy easing is justified. The swaps market is pricing in a one-in-four chance that the Fed will cut its benchmark rate by more than 25 basis points this month.
"The greenback remains at risk of further bullish extension" should the manufacturing data surprise to the upside and spur a more material repricing of Fed rate cut bets, Malayan Banking Bhd strategists led by Saktiandi Supaat wrote in a note. "The August NFP release on Friday is still the elephant in the room."
Source: Bloomberg
