Amid a short working week with the Labour Day break on Monday, the dollar weakened by 0.51% to 98.41 due to global risk-on sentiment as Washington and Beijing agreed to hold high-level talks in October, raising hopes of a de-escalation in trade tensions that has battered global economic growth.
Besides, the global risk-on sentiment was partially supported by: (1) easing political tensions in Hong Kong after leader Carrie Lam announces the withdrawal of the controversial extradition bill; and (2) easing likelihood of no-deal Brexit. Nevertheless, economic release during the week were rather mixed with: (1) August ISM manufacturing figures slightly disappointing at 49.1 from July’s 51.2 (cons: 51.1), slipping into the contraction region for the first time in three years; (2) private payrolls in the US climbing 195,000 in August from 142,000 in July (cons: 149,000); and (3) ISM non-manufacturing PMI surging to 56.4 from July’s 53.7 (cons: 54.0).