Also this week is Chinese trade balance data, which could give a reading on the fundamental forces behind the yuan's rapid rise, while the market's focus for the ECB is on whether the bank adjusts the pace of its bond buying programme.
Analysts say the yuan could face some headwinds in the near term as attempts to rein in the recent rally bite, and as China's uneven recovery continues.
The US dollar index, which measures the greenback against a basket of six major currencies, rose 0.7% on Thursday to stand at a three-week high of 90.574 on Friday.
Still, the Bank of Canada is seen tapering its asset purchase program again next quarter amid expectations for a robust economic recovery, a Reuters poll showed.
On Thursday, the New York Fed said it would start to gradually sell its portfolio of exchange-traded funds that invest in corporate bonds on June 7, the first step in unwinding corporate bond holdings acquired during the pandemic.
Indeed speculators in March flipped rapidly into short yen positions and Japanese currency has been the biggest major loser against the dollar during 2021, dropping almost 6%.
Those employment shortcomings will be front and centre of investors' minds on Friday with the release of nonfarm payrolls numbers for May, after April's much-weaker-than-expected reading sent the dollar index slumping 0.7% on May 7.
The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 97.84, weaker than the previous day's 97.88.
The dollar initially traded lower on the report, in which ISM said manufacturing's growth potential continued to be hampered by worker absenteeism and temporary shutdowns because of shortages of parts and labor.
The case for some sort of tapering was enhanced by data, which showed growth was likely stronger than many expected in the first quarter, while super-low rates are fuelling a boom in house prices and borrowing.
The RBA also appears largely unconcerned by market expectations of inflation rebounding. Like the Fed, this may reflect a belief that any near-term inflation will be essentially transitory."
Economists expect core PCE (personal consumption expenditures) prices jumped 2.9% year-on-year in April, compared with a year-on-year rise of 1.8% a month earlier.