Investors are still digesting the extraordinary nonfarm payrolls released last Friday. DXY Index spiked upon release to nearly 93 but quickly adjusted back. Currently, the Index is trading at 92.767, still at a high level. Last Friday, the nonfarm payrolls landed at 954k, way above the ADP payrolls and the expectation. Moreover, the unemployment rate fell to 5.4% in July. The promising job market data will probably push the Fed to start asset tapering soon. Interest rates might also be raised earlier than expected.
On the other hand, USDCNY inched down to 6.4766. Inflation data in China showed that CPI rose by 1% on a yearly basis, above the forecast at 0.8%. Meanwhile, PPI (producer price index) is also higher than the forecast, rising by 9%. Rising commodity costs have been the major reason for the increase.