Dollar index struggles near one-week low; US data in focus

The dollar index is steadying near a one-week low on Tuesday morning in Asia amid growing expectations of a US federal rate cut following weak labour market data. The yield on the 10-year US Treasury note held around 4.2%, near a three-month low as investors assess global trade tensions and evolving Fed policy expectations. Meanwhile, with Feds independence seen at stake amid Fed Governor Adriana Kuglers unexpected resignation has provided US President Donald Trump an earlier-than-anticipated opportunity to influence the central bank. The DXY that measures the greenback against a basket of currencies is seen pressured under 99 mark. Also, USD net short positions have increased for the first time in four weeks, driven by a decrease in long positions. Investors now await June trade data and the ISM PMI report for further insight into the economic outlook.

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