Dollar Under Pressure Prior to Important US Data – Asia Market Wrap

The Dollar fell and US stock futures fell as traders braced for US jobs data, which could determine the extent of a Fed interest rate drop this month.

A gauge of the Dollar index declined for the third day on expectations that a worse-than-expected payrolls result would prompt the central bank to slash interest rates by 50 bps at its September meeting. Asian shares were mixed ahead of the numbers, with Hong Kong stock trade halted due to a typhoon. The Yen has increased.

Treasury yields moved lower after dipping on Thursday, putting fresh negative pressure on the Dollar. The benchmark 10-year yield fell one basis point, to 3.71%.

Hong Kong suspended trading on its $4.9 trillion stock market on Friday as the city extended a storm warning due to Super Typhoon Yagi, which passed through the region overnight and headed towards southern China.

In Asia, China may face new export limits on crucial technologies imposed by the Biden administration. Washington has limited China’s access to cutting-edge technologies required for artificial intelligence, fearing that advanced chips and components could provide Beijing a military advantage.