Dollar Edges Higher as Markets Await US Inflation Data

The US dollar nudged higher on Wednesday, August 26, as investors waited for key inflation data from the United States. The Australian dollar, however, gained momentum after a report showed the trimmed mean CPI gauge rose at an annual rate of 3.6%, exceeding expectations.

The Reserve Bank of Australia's preferred measure of cost-of-living pressures has been rising steadily, with some analysts warning that there may be another interest rate hike on the horizon. Capital Economics 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 remained range-bound against major peers, but did climb 0.1% against the Japanese yen to 158.95 yen. Sterling slipped 0.2% to $1.3624, while the euro was slightly weaker at $1.1664.