Gracing the market at the start of the week was positive US dollar trade with investor focus directed at the policy meetings of the three major central banks this week.
A stronger reading in the United States' personal consumer spending (PCE) data last Friday has reduced expectations that the Federal Reserve (Fed) will slow its interest rates.
PCE, which is the Fed's preferred measure of inflation, rose 0.5% in September in line with the increase recorded in the previous month.
Meanwhile in the 12 months to September, the PCE price index rose 6.2%, after rising at the same level in August.
This again strengthened investors' expectations for a rate hike of 75 basis points by the Fed early Thursday morning (Malaysian time).
Another major focus for USD investors this week is the US NFP jobs report on Friday which will certainly have a high impact on the market.
At the same time, the focus is also on the Bank of England (BOE) policy meeting that will take place in the New York session on Thursday, where it is also expected to raise rates by 75 basis points.
The pound traded steady around weekly highs, holding on to gains made following the appointment of Rishi Sunak as the UK's new Prime Minister.
However, before the meeting of the two central banks, investors will watch for a policy decision from the Reserve Bank of Australia (RBA) on Tuesday which is expected to increase rates by 25 basis points.
Following that expectation, the Aussie dollar traded slightly lower than the gains recorded last week and was also affected by gloomy sentiment following the news of .
On the other hand, the yen traded weak after losing 1% last week following the Bank of Japan (BOJ) meeting decision which kept its policy and Governor Haruhiko Kuroda continued to offer dovish remarks.
