Before the close of trading at the end of last week, the market focused on the PCE price index data which measures the personal spending of consumers in the United States (US) in the last session.
The data reading was good with figures in line with market forecasts with consumer spending in July seen rising.
This situation increases the tendency that the expectation for the interest rate cut by the Federal Reserve (Fed) if implemented is at a smaller rate, which is 25 basis points compared to 50.
This week, US employment data will be an important indicator to assess before the market prepares for the highly anticipated September FOMC meeting.
Meanwhile, the US dollar has shown a positive recovery pattern in the past week, posting its biggest weekly gain since June trading.
The strengthening of the US dollar was also supported by the US economic growth report which recorded an encouraging figure for the second reading while reducing expectations of an aggressive policy easing by the Fed.
Analysts have warned early on the expected change in the US dollar's movement pattern approaching the closing trade of August.
Profit taking activity by market players is expected to occur after the US dollar showed a sustained decline in the previous weeks.
The market movement at the beginning of this week is expected to be slow with the absence of major economic data to drive the currency and the American market is also closed in conjunction with Labor Day.
Investors also remain cautious with a wait-and-see mode at the opening of trading in early September.
