The strengthening momentum of the US dollar began to slacken at the end of last week's trade, but the situation was expected and warned by analysts.
Investors have seen the US dollar perform well for 3 consecutive weeks even after the Federal Reserve (Fed) began easing policy with an aggressive interest rate cut of 50 basis points at its September meeting.
Other factors in focus such as the latest economic data and risky market sentiment have supported the US dollar from falling.
However, the market is now preparing to expect a change to a recovering global market sentiment which will be supported by China's economic stimulus plan.
The Chinese government launched two fund schemes to boost their stock market and this also had a positive effect on the global market including the rise in major indices such as the S&P 500 and Nasdaq.
The increase in the value of the Yuan also lifted the value of commodity currencies such as the Australian and New Zealand dollars while reducing the attraction of safe-haven currencies.
The development of the situation in the Middle East continues to be monitored and the market is in a state of alertness with the uncertainty approaching this November's Presidential election event.
Although analysts assessed the decline of the US dollar at the end of last week as just a price correction with profit taking activities by market players, the situation could continue in early trading this week.
The US dollar is still supported by the expected factor of the Federal Reserve's (Fed) monetary policy being less aggressive for policy easing that will continue at the November meeting.
