Here is what you need to know on Monday, August 1:

Despite the hot US inflation data, the greenback struggled to find demand on Friday and the US Dollar Index (DXY) ended up closing the second straight week in negative territory. The index stays relatively quiet below 106.00 on Monday as investors wait for the ISM to release the Manufacturing and Services PMI reports for July. The European economic docket will feature the Unemployment Rate for June. In the early trading hours of the Asian session on Tuesday, the Reserve Bank of Australia will announce its interest rate decision. Meanwhile, US stock index futures are down between 0.4% and 0.5%, pointing to a cautious market mood at the start of the week.

Earlier in the day, NBS Manufacturing PMI in China came in at 49, suggesting that the business activity in China’s manufacturing sector contracted in July. The Non-Manufacturing PMI declined to 53.8 from 54.7 in June.

The data from the US showed that the Personal Consumption Expenditures (PCE) Price Index climbed to 6.8% on a yearly basis in June from 6.3% in May. The Core PCE Price Index, the Fed’s preferred gauge of inflation, edged higher to 4.8% from 4.7% in the same period. The benchmark 10-year US Treasury bond yield, which lost nearly 4% last week, clings to modest daily gains early Monday, helping the dollar stay resilient against its rivals.