Analysts said that Tuesday's trading may also be affected by the rebalancing of the stock market's portfolio at the end of the month, which may cause funds to flow into the Canadian dollar, British pound and Swiss franc and out of the U.S. dollar. The New Zealand dollar and Australian dollar led the G-10 currency gains, while the Norwegian Krone fell.

The US dollar index fell 0.04% to 92.65 in late trading. It was as low as 92.40 earlier, the lowest since August 6, but the monthly line still rose by more than 0.6%. U.S. 10-year Treasury bond yields rose 3 basis points to 1.31%

ING analyst Francesco Pesole and others said that Powell’s tone seems to be more cautious compared to the recent speeches of Fed officials, which will anchor the front-end yields for a longer period of time. This is “an environment conducive to high-beta currencies and should be suppressed. Strongly bullish any rebound in US dollar sentiment".

The euro rose 0.10% against the dollar to $1.1809; data released earlier in the day showed that inflation in the euro zone soared to a 10-year high this month, and consumer prices in 19 countries in the euro zone rose 3% this month.

Erik Bregar, director and head of foreign exchange strategy at Exchange Bank of Canada, said that if the employment numbers are disappointing, there is another reason for the euro to rise again against the dollar, because all the doves will come out and say that the Fed will not in September Reduce debt purchases.

The pound against the U.S. dollar hit a two-week high of $1.3807 at one time and reported at $1.3753 in late trading, down 0.04% on the day.

The New Zealand dollar rose 0.66% to 0.7045 against the US dollar. New Zealand’s Prime Minister Jacinda Ardern said that the lockdown outside Auckland will be partially relaxed due to encouraging signs that the community’s Covid-19 epidemic is being brought under control. The Australian dollar fell 0.7% to 1.0349 against the New Zealand dollar, and then the decline narrowed to 0.4%. The Australian dollar rose 0.27% to 0.7316 against the dollar.

Investors will pay attention to a series of US economic data released later this week to measure the strength of the labor market. The most important is Friday's employment data. Investors seek to determine when the Fed may begin to tighten policy.

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