Dollar Range-Bound Ahead of Inflation Data and Jackson Hole

The US dollar traded in a narrow range on Wednesday ahead of inflation data releases from major economies, including the US, and the Jackson Hole symposium later this week. The currency edged higher against its peers but remained range-bound as investors awaited the release of July's personal consumption expenditures (PCE) data, which is the Federal Reserve's preferred inflation gauge.

The Australian dollar was a notable mover, hitting $0.7865, its highest level in three months, after data showed the trimmed mean CPI gauge rose at an annual rate of 3.6%. Capital Economics analysts noted that underlying inflation shows no signs of slowing, leaving a risk that the Reserve Bank of Australia will deliver another rate hike over the coming months.

Aside from the Swiss franc, moves in major currency pairs were muted ahead of the potentially pivotal few days for markets. The dollar climbed 0.1% against the Japanese yen to 158.95 yen, while sterling slipped 0.15% to $1.3633.