FXStreet reports that in the view of analysts at Westpac, dips on the US Dollar Index (DXY) are likely limited to 91.5-92.0.

“July’s emphatic payrolls gain underscores an economy that is finding its reopening groove despite ongoing reopening constraints and an expanding 4th Delta Covid wave. The Fed’s centre of gravity is shifting, doves (Evans) and centrists (VC Chair Clarida and SF President Daly) voicing support for a scaling back of stimulus. Fed officials likely continue to drop more explicit hints in coming weeks, markets likely to focus on the upcoming Jackson Hole symposium and the Sep FOMC meeting. DXY should continue to find support in the 91.5-92.0 area and as taper talk rises to a crescendo in Q3 could see new highs beyond 93.50.”