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Around 102.70 on Monday morning in Asia, the US Dollar Index (DXY) receives bids to trim the four-week high in weekly gains. In doing so, the US Dollar index versus the six major currencies consolidates its most recent advance amid modestly positive sentiment and market preparations for this week's top-tier US data and speeches from the most influential central bankers.

It is important to note that doubts about Russian President Vladimir Putin's power in Moscow and hopes for a significant stimulus from China led to cautious optimism among traders and weighed on the US Dollar. According to Reuters, "heavily armed Russian mercenaries withdrew from the southern Russian city of Rostov in accordance with an agreement that halted their rapid advance on Moscow but raised questions on Sunday about President Vladimir Putin's hold on power,"

In addition, Ning Jizhe, deputy head of the economic committee of the Chinese People's Political Consultative Conference (CPPCC) and a former vice head of the National Development and Reform Commission (NDRC), voiced concerns regarding a quicker stimulus from China, allowing the sentiment to recover. China's Ning Jizhe was quoted by Reuters as saying, "China must take immediate action to bolster a faltering post-COVID recovery in the world's second-largest economy."

The DXY purchasers remain optimistic despite news reports indicating a pause in China optimism by major investors, hawkish comments from Fed officials, and relatively upbeat US data.

"Investors are awaiting a large influx of stimulus from China before placing more aggressive wagers on a recovery, having been disappointed by economic data and a lack of meaningful policy response from Beijing over the past few months, according to Reuters.

After observing positive data, Fed officials hurry to propose two additional rate hikes for the United States. The US S&P Global PMIs for June were uneven on Friday, with the Manufacturing PMI falling to 46.3 from 48.4 previously, compared to the expected 48.5, while the Services PMI rose to 54.1 from 54.0 despite being lower than the 54.9 previous monthly figure. This resulted in a decrease in the Composite PMI to 53.0, compared to 54.4 market expectations and 54.3 previously.

In response to the mixed US PMIs, Chris Williamson, chief business economist at S&P Global Market Intelligence, stated, "Of course, any additional rate hikes will have a further dampening effect on this sector (services), which is particularly sensitive to changes in borrowing costs." However, Mary Daly, president of the Federal Reserve Bank of San Francisco, told Reuters on Friday that two additional interest rate hikes this year are a "very reasonable projection."

S&P500 Futures gain 0.20 percent intraday near 4,400 despite witnessing a negative week for Wall Street and an increase in US Treasury bond yields.

Even though risk-positive headlines from China and Russia weigh on the US Dollar Index (DXY), DXY bulls remain optimistic unless there is a clear rejection of the risk aversion from the US inflation data and speeches of the top-tier central bankers at the European Central Bank (ECB) Forum, as well as the US Bank Stress Test results.

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