Dollar Holds Steady Ahead of Inflation Data and Oil Prices Fall

The US dollar is holding steady in early Asian trading as investors await inflation data and Jackson Hole. Oil prices fell due to Iran-Oman talks, but bitcoin and ether are gaining. The greenback remains in a narrow range against its major peers ahead of the release of PCE data for July.

According to Westpac analysts, 'signs of Middle East de-escalation' have weighed on oil prices and supported broader risk sentiment. Oil prices slid 2.1% to $86.68 as Iran said it had restarted talks with Oman to manage the Strait of Hormuz.

The Australian dollar rose 0.1% after data showed trimmed mean CPI inflation measure rose at an annualised rate of 3.6%, while the kiwi dollar fell 0.2% ahead of an interest rate decision from the Reserve Bank of New Zealand. The US dollar weakened 0.1% against the Canadian dollar to C$1.38405 per dollar.

The yen was steady at 159.14 yen, remaining firmly below levels that triggered joint intervention by U.S. and Japanese officials in the past month. Economists in a Reuters poll said the Bank of Japan will likely move more swiftly than previously expected and raise interest rates again in September.