Forex Today: Greenback comeback crumbles amid political impasse, data, Sino-American tensions

Here is what you need to know on Tuesday, August 4:

The US dollar is on the back foot once again as American lawmakers fail to reach a deal, Sino-American tensions remain high, and data is unclear. Coronavirus-related developments are set to join the mix.

Fiscal stimulus: Democratic Speaker of the House Nancy Pelosi said that a fiscal stimulus deal is unlikely this week and may have to wait until next week. White House Chief of Staff Mark Meadows said that Republicans will not agree to a package worth more than $1 trillion. Federal unemployment benefits and other programs expired last week and the lack of support is weighing on the economy. Talks resume on Tuesday.

Charles Evans, President of the Chicago branch of the Federal Reserve, said that the ball is in Congress after the Fed did its part. Other officials 

Economic data: The ISM Manufacturing Purchasing Managers' Index beat expectations with 54.2 points, but the employment component remained depressed below 50, including a contraction in hiring. Factory Orders are due out on Tuesday as tension is rising toward Friday's Non-Farm Payrolls. 

See US Manufacturing PMI Rebounds to 16 Month High in July:  Employment trails general improvement

Coronavirus hopes: A treatment called RLF-100 helps critically-ill COVID-19 patients and is being fast-tracked in the US. Vice President Mike Pence reiterated hopes for having a coronavirus vaccine in the autumn. Regeneron Pharmaceuticals has joined the race to develop immunization after its drug proved efficient in animals.

On the other hand, Dr. Tedros Adhanom Ghebreyesus, the head of the World Health Organization, said there "might never be" a silver bullet for the disease. Nearly 700,000 people have died worldwide, 155,000 in the US.

COVID-19 figures from Florida, Texas, California, and other states is of interest on Tuesday after statistics have been exceptionally low on Monday due to the weekend effect. Hurricane Isaias and its impact are also eyed. 

Sino-American tensions: The US will allow TikTok to sell its operations to Microsoft or any other American company until September 15. The popular Chinese social network has been the latest focus in a long list of issues between the world's largest economies. 

AUD/USD is trading above 0.71, weathering the Reserve Bank of Australia's decision to resume bond buying. The Canberra-based institution is concerned about the rise in coronavirus cases in Victoria and the following lockdown. Australian retail sales beat with an increase of 2.7% in July, while the trade balance surplus fell short of estimates. 

EUR/USD is trading above 1.1750, up from the lows. Upbeat eurozone PMIs are battling fears of rising COVID-19 cases in some parts of the old continent. 

GBP/USD bounced off 1.30 as the British government continues making plans for an increase in coronavirus infections, including locking down London. 

Gold prices have stabilized below $1,980, seemingly unprepared to attack the $2,000 level just yet. 

Bitcoin is holding its ground above $11,000, resuming its gains after a wild weekend – including moves above $12,000 and below $10,000. 

More Where next for the dollar, stocks and the US economy after downbeat data and the Fed