The U.S. dollar strengthened against its major rivals in European deals on Monday, amid sell-off in commodities after weak Chinese data and traders await U.S. economic data due today.

Downbeat Chinese manufacturing data sparked fresh concerns over slowing growth in China, dragging commodities down.

Activity in China's vast manufacturing sector contracted further to a two-year low in July, due to renewed falls in total new work and new export orders, the latest survey from Caixin and Markit Economics showed. The final PMI reading dropped to 47.8 from 49.4 in June.

The report followed downbeat official PMI figures released by the statistics bureau over the weekend, which showed that growth at big manufacturing firms unexpectedly stalled last month with the PMI falling to 50.0 in July from June's sluggish growth reading of 50.2.

The U.S. manufacturing PMI for July, personal income and construction spending, and the core personal consumption expenditure price index - all for June are due later in the day, which could shed more light about the economy's strength. Expectations for a Fed rate hike by next month also make the dollar more attractive to investors.

The currency declined on Friday, as weak wage growth reignited concerns about the timing of interest rate hike. It fell 0.12 percent against the pound, 0.81 percent against the yen, 0.41 percent against the franc and 0.48 percent against the euro.

The greenback showed mixed trading in the previous session. While the greenback held steady against the franc, pound and the euro, it rose against the yen.

In European trading, the greenback that ended Friday's trading at 123.83 against the yen advanced to 124.22. The next possible resistance for the greenback-yen pair may be located around the 125.00 zone.

The greenback edged up to 1.0952 against the European currency and 1.5582 against the pound, up from last week's closing values of 1.0981 and 1.5615,respectively. On the upside, the greenback may find resistance around 1.08 against the euro and 1.55 against the pound.

The greenback was trading higher at 0.9671 versus the franc, compared to 0.9649 hit at Friday's close. The greenback is seen finding resistance surrounding the 0.98 level.

The greenback appreciated to 0.7270 against the aussie, up by 0.3 percent from Friday's closing quote of 0.7295. Further gains may take the greenback to a resistance around the 0.70 area.

The greenback spiked up to 1.3175 against the Canadian dollar, an 11-year high, and held steady thereafter. This may be compared to last week's close of 1.3085. If the greenback extends rise, it is likely to find resistance around the 1.33 mark.

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