Fedspeak and data put the US economy at the center of the debate

The greenback started the week on a strong note as investor caution prevailed ahead of the release of key data in the US economy, where the labor market is seen as the center of attention.

Here’s what you need to know on Tuesday, October 1:

The US Dollar Index (DXY) reversed two consecutive daily pullbacks and posted a sharp rebound near the 101.00 hurdle. The final S&P Global Manufacturing PMI will be supported by JOLTs Job Openings, Construction Spending and ISM Manufacturing PMI. In addition, the Fed’s Bostic and Cook are scheduled to speak.

EUR/USD could not sustain the initial break above the 1.1200 barrier and eventually succumbed to the greenback’s better tone. The preliminary euro bloc inflation rate takes center stage along with the final HCOB Manufacturing PMI in both Germany and the euro area. In addition, De Guindos and Schnabel from the ECB will speak.

GBP/USD traded indecisive, settling around 1.3360 after an initial rise above 1.3400. The final S&P Global Manufacturing PMI will be released.

USD/JPY left behind Friday’s strong pullback and managed to recover the 143.00 region and beyond after an early dip to 141.60. The unemployment rate and the BoJ Opinion Summary will be in focus.

AUD/USD extended its move higher north of 0.6900 and hit fresh YTD highs, largely on the back of Chinese stimulus. Judo Bank’s final manufacturing PMI will be released along with building permits, retail sales, private home approvals and commodity prices.

A volatile session saw WTI prices around $68.50 despite rising geopolitical concerns and additional stimulus in China.

Gold prices came under further pressure and added to Friday’s losses near the $2,630 per troy ounce region. In the same direction, silver prices fell to four-day lows and revised the region below $31.00 per ounce.