The greenback falls to fresh lows on the day in European trading

Of note, commodity currencies are capitalising on the sentiment to start the new week as the market stays focused on the fact that the Jackson Hole symposium isn't likely to bring any changes to the Fed's taper narrative.

USD/CAD is meeting fresh lows at 1.2735 currently, nearing a test of its 100-hour moving average (red line) at 1.2730. That will be a key level to watch as a break below will shift the near-term bias to being more neutral and discard some of last week's momentum.

USD/CAD H1 23-08

Elsewhere, AUD/USD is up 0.6% to near 0.7180 while NZD/USD is up 0.5% to 0.6860 despite New Zealand announcing a lockdown extension until 27 August.

The dollar is also seen lower against the euro and pound, though keeping higher against the yen as USD/JPY is up to 110.00 as 10-year Treasury yields climb up 2 bps to 1.28% amid a retreat in safety bets from last week.

In the equities space, European indices are holding decent gains while US futures are still up around 0.3%, so that's a modest showing so far on the session for risk.