Oil futures rose nearly 1% in Asian trade as Brent futures climbed from February 22 lows, while US crude prices rose from February 3 lows, while the dollar index rose from June 29 lows. 

That comes ahead of a batch of US data later today, while US-China tensions develop as well. 

As of 05:42 GMT, US crude futures due in September rose 0.99% to $88.80 a barrel, while Brent October futures rose 0.58% to $94.18 a barrel, as the dollar index rose 0.03% to 106.51. 

From the US, building permits are expected down to 1.63 million, while building starts are expected down to 1.53 million from 1.55 million.

US industrial production is expected up 0.3% in July, compared to a 0.2% drop in June. 

Two-year and five-year treasury yields curves remain reversed, in an ominous sign for an upcoming depression in the US economy.

Otherwise, a party of US lawmakers have arrived at Taiwan to discuss relations with Taiwanese government and investments.

China continues to condemn such moves and developing relations between US and Taiwan, and has already begun threatening military actions around Taiwan as a threat.

Otherwise, China continues to face a very stubborn Covid 19 wave that continues to impede growth, with World Health Organization reporting 585.05 million global infections worldwide so far, with the death toll at 6.425 million.

Baker Hughes data showed US oil rigs rose by 3 to 601 rigs, while rising in July for the 24th month in a row, with US output stabilizing at 12.1 million bpd, the highest since April 2020.

US output remains down a million bpd, or 8% from record highs at 13.1 million bpd in March 2020.

US stock indices edged lower on Monday as investors continue to assess latest inflation data. 

US consumer prices slowed down in July, which might nudge the Fed to reconsider its policy approach. 

Otherwise, latest Chinese data showed retail sales and industrial output rose less than expected last month, while China's central bank cut down the main lending interest rates unexpectedly. 

Dow Jones steadied at 33,765 as of 14:06 GMT, while NASDAQ stabilized at 13,050, as S&P 500 slipped 0.1% to 4274. 

Dollar rose in European trade for another session against major rivals away from six-week lows, amid haven demand after disappointing Chinese data.

Investors await important US economic data this week, in addition to the Fed's last meeting minutes to gauge the path forward in monetary policy.

The Index

The dollar index rose over 0.6% to 106.35, after rising 0.5% on Friday, the first profit in five days off six-week lows at 104.63. 

The index lost 0.35% last week, the third weekly loss in a month after data showed US inflation slowed down in July. 

Chinese data

From China, industrial output rose 3.8% in July, slowing down from 3.9% in June, and missing estimates of 4.5%.

China's retail sales rose 2.7%, missing estimates of 5% heavily, and down from 3.1% in the previous reading.

The People's Bank of China earlier cut interest rates unexpectedly, on one-year lending rates to certain loans by 10 basis points to 2.75%.

US Data

Investors await US retail sales data later this week, in addition to the Fed's meeting minutes, to gather clues about the economy's health in the third quarter. 

Euro fell in European trade for another session off five-eek highs on active profit-taking, amid mounting risks about European growth and after an interest rate cut in China.

Dollar is also gaining considerable ground following disappointing Chinese data, which cast doubt on the overall performance of the global economy. 

EUR/USD fell 0.6% to 1.0192, after losing 0.6% against dollar, the first loss in five days, off five-week highs at 1.0369 on profit-taking. 

Euro maintained a 0.8% profit last week against dollar, the third weekly profit in a month. 

Growth Risks

Analysts continue to doubt economic growth prospects in Europe as energy supplies collapse due to the ongoing crisis in Ukraine, in turn hurting euro's standing. 

The People's Bank of China earlier cut interest rates unexpectedly, on one-year lending rates to certain loans by 10 basis points to 2.75%.

The Dollar

The dollar index rose over 0.6% on Monday for another session against a basket of major rivals. 

A batch of weak Chinese industrial data boosted haven demand on the greenback, ahead of important US retail sales data and the Fed's minutes.