U.S. Dollar Subdued At Start Of The Week

The U.S. dollar slipped against its major counterparts in the Asian session on Monday, as traders cautiously awaited congressional testimony by Federal Reserve Chairman Jerome Powell this week.

Powell testifies before Congress on monetary policy and the state of the U.S. economy on Wednesday and Thursday as investors look for clarity on the central bank's policy plans for the coming months.

The minutes of the June FOMC meeting as well as closely-watched reports on consumer and producer price inflation due this week could also have an impact on perceptions of the likelihood of an interest rate cut.

On Friday, data from the Labor Department showed that U.S. employment surged up by 224,000 jobs in June after edging up 72,000 jobs in May. Economists had expected employment to increase by about 160,000 jobs.

The dollar's consolidation come after Friday's rally, when strong monthly jobs report dented hopes for a near-term interest rate cut by the Federal Reserve.

The greenback dropped to 1.1233 against the euro, from a high of 1.1220 hit at 8:45 pm ET. The greenback is seen finding support around the 1.14 region.

The greenback edged down to 0.9899 against the franc, after rising to 0.9918 at 5:00 pm ET. On the downside, 0.96 is possibly seen as the next support level for the greenback.

The greenback reversed from an early high of 1.2521 against the pound, weakening to 1.2533. If the greenback extends decline, 1.27 is possibly seen as its next support level.

Following a high of 108.59 seen at 6:15 pm ET, the greenback reversed direction and dropped to 108.28 against the yen. Further downtrend may take the currency to a support around the 106.00 region.

Data from the Cabinet Office showed that Japan core machine orders fell 7.8 percent on month in May - worth 842.9 billion yen.

That missed expectations for a decline of 3.7 percent following the 5.2 percent increase in April.

The greenback fell to 0.6991 against the aussie and 0.6645 against the kiwi, from its previous highs of 0.6974 and 0.6620,respectively. The greenback is poised to challenge support around 0.715 against the aussie and 0.68 against the kiwi.

On the flip side, the greenback rose to 1.3083 against the loonie, from a low of 1.3067 set at 5:00 pm ET. The next possible resistance for the greenback is seen around the 1.34 mark.

Looking ahead, Eurozone Sentix investor sentiment for July is due in the European session.

The U.S. consumer credit for May is scheduled for release at 3:00 pm ET.