The dollar steadied on Monday, as markets digested mixed economic data from the United States and China.

The dollar index, which tracks the U.S. currency against a basket of major peers, was up 0.13% at 102.40 on Monday. The index had fallen 0.87% on Friday after U.S. nonfarm payrolls increased by just 209,000 in June, missing market expectations.

However, the dollar’s Friday slide was partly offset by strong wage growth in the employment report. This suggests that the Federal Reserve will continue to raise interest rates in an effort to combat inflation.

In China, data released on Monday showed that factory-gate prices fell at the fastest pace in 7-1/2 years in June. Consumer inflation was also at its slowest since 2021. This weak data has raised concerns about the health of China’s economy and could lead to further stimulus measures from the Chinese government.

The Australian and New Zealand dollars, which are often used as liquid proxies for the Chinese yuan, fell on Monday. The Aussie fell 0.72% to $0.663, while the New Zealand dollar slid 0.4% to $0.6185.

The U.S. dollar, on the other hand, rose against the offshore yuan to 7.239.

The dollar’s performance on Monday was mixed. The currency was supported by strong wage growth in the U.S. employment report, but it was also weighed down by weak economic data from China.

The next major event for the dollar will be the release of U.S. inflation data on Wednesday. If inflation comes in higher than expected, it could lead to further dollar strength.

In the meantime, markets will continue to monitor economic data from both the United States and China for further direction.