The US dollar is moving defensively around the lowest level in one month. That is happened in the early week trading this say. That follows the dissapointing NFP data so far. 

For your information, that data was under the expectation. The Dollar Index (DXY) is traded in the range of 92.15. Some experts said that the position of that currency is not too good. 

Despite gaining 0.04 percent from the daily Open price, prices have not fully rebounded from last weekend's slump. Investor profit-taking action for short dollar positions underpins the thin strengthening.

That can be seen in the Asian session trading this morning. The dollar is known to strengthen limitedly versus the commodity currencies from some released in the market. 

The Movement of the USD

The AUD/USD was down by 0.14 percent at 0.7439. Meanwhile, the USD/CAD was up 0.08 percent at 1.2534. The US dollar's strengthening of the Canadian was supported by something.

It is especially the weakening world oil price amid concerns over the outlook for global demand. The US dollar was also slightly lifted against the Euro currency. 

That can be seen from the movement of the EUR / USD which is currently in the range of 1.1876 or weakened by 0.01 percent. That data is quite positive. 

Against the safe haven Yen and Swiss Franc, the US dollar was also observed to strengthen. So far, that movement is still not too strong and the economy data will be highlighted as always. 

The Strengthening is Just Temporary

The Analysts see that the strengthening of the dollar this morning will only be temporary. This is due to the investor disappointment in responding to the release of the latest NFP data.

That release dimmed the Fed's tapering expectations in the near future. The Fed has repeatedly asserted that a labor market recovery is one of the key conditions for reducing monthly asset purchases.

Due to this thing, the CBA or Commonwealth Bank of Australia predicted that the Fed tapering will be delayed from October to December. The worse COVID-19 situation is also a cause. 

The worse case there will weight on the Greenback because the situation in the other places. Broadly speaking, the movement of the US going forward will still be influenced by the release of economic data.

How about the Tapering Plan? 

The economic Data is especially inflation, manufacturing, and U.S. consumer sentiment. If incoming economic data continues to deteriorate in the months ahead, there is an impact. 

The Fed is likely to revise its outlook for monetary tightening plan which has been made before. The USD weakened after the NFP data reportedly fell well below expectations on Friday evening. 

As of this writing, the Index fell 0.14% to 92.08. That is the lowest level since early August.  The U.S. Department of Labor reported that the Non Farm Payrolls only reached 235,000.

That was especially in August 2021. The gain was well below expectations of 720,000 and the previous period's revised figure rose to above one million.

The Jobless Rate Declined 

However, other employment data released along with the NFP is quite good. The America’s unemployment rate fell by 5.2% as expected, while average hourly earnings rose.

That was from 0.4% to 0.6% which is better than expectations to fall to 0.3%. The disappointing results of the NFP report show a slowdown in the economic recovery in the third quarter of 2021. 

The Delta's surge in COVID-19 infections in the America and the lack of raw materials for the industry is suspected to be the cause of the slowdown in economic recovery. 

That is why; the Markets expect that the Fed will not to change its policy anytime soon. It is based on the conditions happened right now.