The performance of the US dollar was seen as good when trading at the beginning of the week yesterday did not continue the pattern of decline that occurred last week.
The dollar index (DXY) has bounced back after falling to a 3-week low close to 104.50 points. Meanwhile, the 10-year treasury yield of the United States (US) remained hovering below the 4.50% level.
Markets reacted to last week's US NFP jobs data report which saw all components of the data for April in decline.
This adds to expectations for policy easing measures, namely interest rate cuts by the Federal Reserve (Fed) to be implemented.
However, investors refocused on the results of the last FOMC meeting which had a hawkish tone with the latest views by Fed officials being scrutinized.
Richmond Fed President Thomas Barkin who is one of the voting members of the FOMC gave his views on the economy on Monday yesterday.
He saw no signs that inflation was on track to meet the central bank's target.
He is more inclined to maintain high interest rates. Economic growth is still good, the Fed now needs to focus on the job market.
Meanwhile, New York Fed President John Williams maintained the expectation that the Fed would implement 2 rate cuts this year, but did not specify a fixed time.
The focus today (Tuesday) will be on the Reserve Bank of Australia (RBA) monetary policy meeting at 12.30pm.
The RBA is expected to keep interest rates unchanged at 4.35% and the market also expects the central bank to maintain a hawkish tone for its monetary policy following a rise in the latest inflation reading.
