US Dollar Index trades above 96.50, remains steady near three-year lows

• The US Dollar Index holds position near 96.38, the lowest since February 2022, on Tuesday.
• Fed's Powell said that central bank will gauge more data but did not rule out a rate cut in July.
• US ISM Manufacturing PMI climbed to 49.0 from 48.5 in May, against the expected 48.8.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining steady and is trading around 96.70 during the Asian hours on Wednesday. Traders will likely observe the US ADP Employment Change report for June later in the day.

Fed Chair Jerome Powell highlighted on Tuesday that the US central bank will gauge more data before it initiates monetary policy easing, but he did not rule out a rate reduction in the July meeting. US Treasury Secretary Bessent told Fox News that he believes the Federal Reserve will cut interest rates earlier than the fall, but they will definitely cut rates by September at the latest.

US ISM Manufacturing PMI advanced to 49.0 from 48.5 in May, coming in above experts' expectations of 48.8. The readings indicated that economic activity in the United States (US) manufacturing sector improved in June. US JOLTS Job Openings rose to 7.76 million in May, compared to 7.395 million openings reported in April. This figure came in above the market expectation of 7.3 million.

The US Senate has narrowly passed the President Trump's "big, beautiful budget bill", with a thin 51-50 margin. The bill now heads to the US House of Representatives, where it is expected to face a tight vote. Trump, who campaigned on eliminating the US federal deficit, is now set to sign a spending bill into law that will add trillions of dollars to the national debt over the next decade.