The currency market returned to brisk trading on Tuesday yesterday after the Labor Day holiday in the United States (US) prompted slow movement at the opening of the week.
Initial focus was on survey data by the ISM for the US manufacturing sector with the published figure remaining below the 50 point level, indicating continued contraction in the sector in August.
However, the figures showed a slight improvement compared to the previous month which had declined further to approach the targeted forecast level.
The US moved weak at the opening of the New York session yesterday but strengthened slightly when the reaction to the survey data was published at 10pm local time.
Investors remain cautious with the current movement of the US dollar which is risky ahead of some important US employment component data towards the end of the week.
JOLTS data will be watched in the New York session tonight (Wednesday) to measure the number of job offers that opened in the US in July.
ADP data will follow on Thursday before the main focus will be on the release of the NFP employment report on Friday.
The market sentiment at the beginning of September is considered risky with the brisk selling activity of the stock market, driving the attraction of safe-haven currency trading including the US dollar and Yen at this time.
While high-risk currencies such as the Pound and the Australian dollar are under pressure, continuing the pattern of last week's movement.
The Canadian dollar was also trading weak as the market expected the Bank of Canada (BOC) at its latest policy meeting today to cut interest rates for the third time in a row.
