A nascent rebound in the dollar paused on Tuesday, as investors weighed mixed but encouraging economic data against slow progress toward a U.S. government spending package and another week of rising coronavirus deaths. The U.S. dollar had its worst month in a decade in July but began August with a bounce, pushing as high as $1.1695 per euro on Monday, 1.8% above last week's two-year low. That, along with other majors, had retraced a little by morning trade in Asia, leaving the dollar at $1.1755 on the euro and 93.574 against a basket of currencies - below a one-week top of 93.997 hit on Monday. The yen also recovered some overnight losses to sit at 106.08 per dollar, as did Australian dollar , though it was 0.1% softer at $0.7117 ahead of a central bank meeting later on Tuesday. Chicago Fed President Charles Evans reiterated overnight that the next help for the virus-battered U.S. economy must come from fiscal policy. That is exactly where markets are focused, with investors now watching signs of progress in Washington. Top Democrats in Congress and White House negotiators on Monday said they had made headway in talks on the latest coronavirus relief bill, though an expired $600-per-week unemployment benefit remains a sticking point. A better-than-expected expansion in the Institute for Supply Management's U.S. manufacturing index was also a positive for the dollar. But it came with a warning as output remains far below pre-virus levels and the employment index was below forecasts, at a still contractionary 44.3.