Core Insights - The U.S. dollar remains stable ahead of a potential government shutdown, which could impact the release of key economic data, particularly the monthly jobs report [1][2] - The Australian dollar is performing well due to the central bank's cautious stance on inflation [1] Economic Impact - The U.S. government funding is set to expire, and without a temporary spending deal, economic data releases, including employment statistics, will be halted [2] - The payrolls report, crucial for Federal Reserve policymakers, is scheduled for release on Friday, and any delay could lead to increased market volatility [3] Market Reactions - Traders are anticipating at least one more U.S. rate cut this year, with a strong likelihood of a second cut by year-end [4] - The dollar index has decreased nearly 10% this year and was down 0.1% at 97.82 [4] Currency Performance - The Japanese yen has strengthened against the dollar, which was down 0.4% at 148.02 yen [5] - There is a 60% chance of a rate hike by the Bank of Japan in December, influencing investor sentiment [5] Strategic Outlook - Selling the dollar against the yen may become a popular strategy if the U.S. government shutdown occurs, as the dollar has been under pressure from political uncertainty [6][7] - The dollar has faced challenges from the risk of a government shutdown and declining oil prices, while the yen has emerged as a strong performer [7]