Dollar Edges Higher Ahead of Inflation Data as Aussie Surges

The US dollar has edged higher ahead of key inflation data releases from the US. The data could set the tone for central bankers meeting at Jackson Hole later this week.

Australia's currency, however, gained ground as a survey showed underlying inflation pressures are increasing, leading some analysts to believe the Reserve Bank may deliver another interest rate hike in the months ahead.

As investors await the release of July PCE data, the dollar was little changed against major peers except for the Swiss franc, which rose 0.3% to CHF 0.8036.

The market's focus has shifted to the release of US inflation figures and Fed Chair Kevin Warsh's speech at Jackson Hole on Friday. Some analysts believe the recent rise in long-dated Treasury yields suggests the Fed may need further rate hikes to bring inflation back to target.