Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
The U.S. dollar hovered close to a one-week low against major currencies on Wednesday as the government approached a potential shutdown that could stall critical economic data releases. Without an interim funding deal between Republicans and Democrats, government operations will cease at midnight Tuesday in Washington (0400 GMT), jeopardizing the release of Friday’s nonfarm payrolls report, a key indicator for Federal Reserve policy decisions.
The U.S. dollar index stood at 97.869 as of 0003 GMT after dipping to 97.633 overnight, its lowest since last Wednesday. Investors remain cautious as U.S. President Donald Trump warned Democrats that allowing a shutdown would give his administration the ability to take “irreversible” actions, including cutting programs important to them. Both the Labor and Commerce Departments confirmed that statistical agencies would suspend data releases during a partial closure, making private-sector indicators more critical for market sentiment.
A mixed reading from the Job Openings and Labor Turnover Survey (JOLTS) added pressure on the greenback. While U.S. job openings ticked higher in August, hiring slowed, signaling a softer labor market. Analysts suggest the dollar could weaken further if political discourse points to an extended shutdown. Joseph Capurso, head of FX at Commonwealth Bank of Australia, said, “The USD will resume its fall today if the political discourse suggests an extended shutdown,” adding that weak U.S. data could intensify selling pressure.
The euro held steady at $1.1731, after reaching $1.1762 on Tuesday, its strongest level since September 24. Meanwhile, the dollar edged 0.1% higher against the yen to 148.15, snapping a three-day 1.2% decline. Traders largely brushed off Japan’s quarterly tankan sentiment survey, despite policymakers highlighting its importance for timing future rate hikes.
The Bank of Japan (BOJ) has adopted a more hawkish tone recently, with board member Asahi Noguchi stressing the urgency of tightening policy. Deputy Governor Shinichi Uchida and Governor Kazuo Ueda are set to speak later this week, potentially offering more signals on monetary policy. Markets currently price in a 39% chance of a BOJ rate hike on October 30, while a Federal Reserve rate cut the day before is seen as nearly certain at 97%.
This uncertain backdrop leaves the dollar vulnerable to further declines, with political gridlock and fragile economic signals weighing heavily on market confidence.
