US Dollar Holds Steady Amid Asian Market Data and Fed Caution

The US dollar has maintained its strength against Asian currencies despite weaker-than-expected US manufacturing data, including an ISM manufacturing PMI reading indicating contraction. Federal Reserve officials remain divided on monetary policy, with some advocating for rate cuts while others emphasize inflation concerns, contributing to the cautious market sentiment. Asian currencies like the Singapore dollar and Indonesian rupiah showed modest weakness or volatility due to inflation surprises and ongoing US dollar momentum. In China, manufacturing activity remains in expansion territory despite slower new orders and mixed PMI data, while South Korea's economy and equities have surged, benefiting from US trade deals and the global AI boom. Investors are closely watching upcoming economic data releases and central bank meetings, including the Reserve Bank of Australia's rate decision, amid ongoing uncertainties such as the US government shutdown and global inflation pressures. Overall, the US dollar's resilience is supported by mixed economic signals, cautious Fed outlooks, and geopolitical trade developments influencing Asian markets.