US non-farm productivity fell 4.7% as expected in the second quarter, compared to a 7.3% drop in the first quarter, while labor unit costs rose 10.8%, slowing down from 12.6% in the second quarter, and beating estimates of 9.4%.

Oil futures tilted lower in Asian trade as the dollar index bounded from July 4 lows, ahead of major US data later today.

As of 05:09 GMT, US crude futures due in August fell 0.12% to 90.58 a barrel, while Brent September futures fell 0.06% to $96.48 a barrel, as the dollar index rose 0.02% to 106.36. 

From the US, non-farm labor productivity is expected down 4.6% in the second quarter, while labor unit costs are expected up 9.4%. 

China announced yesterday new military maneavours around Taiwan amid ongoing talks between US and Chinese military to discuss the Taiwan situation. 

China also announced plans to stop cooperation with US on crime combat, triggering further tensions between both sides. 

Latest Chinese data showed oil imports rose to 8.79 million bpd away from four-year lows as air travel activities improved after lifting off Covid restrictions.

Latest World Health Organization data showed Covid 19 infections at 579.09 million worldwide, with the death toll at 6.407 million.

Baker Hughes data showed US oil rigs fell 7 rigs last week to 598 rig off March 2020 highs, the first decline in ten weeks, while US production steadied at 12.1 million bpd, the highest since April 2020.

US output is down 1 million bpd, or 8% from record highs at 13.1 million bpd scaled in March 2020.

US stock indices rose on Monday ahead of crucial US data later on.

US consumer prices are expected up 8.7% last month, slowing down from 9.1% in June, the highest in four decades. 

Dow Jones rose 0.6%  to 33,000, while S&P 500 climbed 0.6% to 4,167, as NASDAQ rose 0.8% to 12,755. 

The dollar index tilted lower in Asian trade off July 28 highs on profit-taking amid a lack of data from the US and ahead of US inflation data later today.

As of 011:01 GMT, the dollar index fell 0.15% to 106.44, with a session-low at 106.25.

From the US, the unemployment rate fell to February 2020 lows at 3.5%, while the economy added more jobs than expected last month, paving the way for a 0.75% rate hike by the Federal Reserve in September. 

Such data boosted the greenback last week before dipping on active profit taking, with traders now expecting a 73.5% chance of another Fed rate hike at the next meeting. 

This week, the Senate agreed on a $430 billion law that aims to combat climate change and implement some tax exemptions in the field. 

US 10-year and two-year yields are still reversed in an early sign of depression, which already occurred in the first two quarters of the year.  

Tomorrow, US consumer prices are expected up 0.2%, compared to a 1.3% rise in June, while core prices are expected up 0.5%. 

Inflation data are expected to bolster the case for a 0.75% rate hike at the next Fed meeting, especially if inflation came above 9%.