Dollar Edges Higher Ahead of Jackson Hole Symposium
The US dollar edged higher on Wednesday but remained range-bound against major peers as investors awaited US inflation data that could set the tone ahead of the Jackson Hole symposium of central bankers later this week.
The Australian dollar, however, was a notable mover, hitting its highest level in three months after data showed the trimmed mean CPI gauge rose at a faster-than-expected annual rate of 3.6 per cent.
Capital Economics analysts noted that with underlying inflation showing no signs of slowing, there's still a risk that the RBA will deliver another rate hike over the coming months.
The dollar also rose against the Swiss franc and Japanese yen, while sterling slipped and the euro was weaker. Traders were focused on the release of July US personal consumption expenditures (PCE) data, ahead of Federal Reserve Chair Kevin Warsh's keynote speech at Jackson Hole on Friday.