The US dollar was weakening in the initial trading week or in 23 of August. That was caused by the profit taking action. The loosened rally can be seen in the dollar index movement or DXY. 

Nowadays, that is around the level of 93.40 or weakened by 0.07% from the daily open level. Before, it was increasing and touching the highest level in the 10 months period. 

Dollar starts to be corrected because of the uncertainty ahead the Jackson Hole symposium. It is because the Dallas The Fed President, Robert Kaplan, said that he may consider about tapering. 

It is especially if the delta variant of the coronavirus triggers the bad impact for the America’s economy. That statement is quite surprising because Kaplan is known with his hawkish direction. 

Investors don’t Want to Speculate

Because of the situation above, the investors don’t want to speculate further and prefer to liquidate the Long position as a base of the dollar weakening in the last two sessions. 

In the major pairs, dollar is monitored and has the low position versus the AUD, CAD, and NZD. They are known as the commodity currencies pair. The AUD/USD is now stronger by 0.31%.

They are around the level of 0.7160. Meanwhile, the USD/CAD was weakening by 0.35% in the level of 2.2777. A currency analyst of NAB, Ray Attrill said his opinion about this thing. 

He think that it is too early to Confirm about the AUD rebound. Australia is now also facing the delta variant case increase, so that it will still give a benefit for the US dollar as a safe haven. 

The Jackson Hole Symposium will be a Focus

Due to the Jackson Hole symposium that will be a focus of the investors along this week, The Fed has been changing that yearly meetin. They change the concept into the virtual one. 

This decision was taken ahead of the COVID-19 cases increase in the United States several days lately. This thing arises the question amidst the market participants about the assessment. 

That is the assessment from The Fed to the economy effect which is caused by the corona delta virus waves. Before that, the US dollar reached its highest level in 9.5 months. 

That is especially due to the major currencies on Friday. It was also supported by the worry that the delta variant may delay the global economy recovery right when the central bank starts to flip the stimulus. 

The Currency Market Movement is Controllable 

Meanwhile, the movement in a currency market is more controllable than on Thursday because the equity market is stable. The New Zealand and Australian dollar felt off significantly. 

The index of dollar rose by 93.597 for the first time since the early of November. Before it was traded, that currency was around the level of 93.629. How about for this week progress? 

It is on the track to get for about 1 percent value as the biggest one since two months. The Fed July meeting was released on Wednesday. That shows a decision which may affect the market. 

Most of the representatives hoped that the obligation purchase can be reduced at the end of this year. The Australian Dollar felt to the lowest level in 9.5 month. It is in $0.7106.

The Lockdown and It’s Effect

That currency is weakening because the lockdown in Sydney is extended up to one month. The New Zealand Kiwi declined to the level of $0.6807. The lockdown there is also extended. 

That is why; the central bank is then delaying the interest rate increase this week. Yen as a safe haven currency is stronger and dollar felt by 0.2% in the position of 127.96 yen. 

Sterling is slipped to its lowest position in one month to the dollar and Euro. The developed country market is also having the worse weeks there are two causes of it. 

Those are the strict regulation in China and the concern about growth. Besides that, this pandemic has been making the investors to look for a safer asset.