Dollar Waits for PCE and Warsh Amid Range-Bound Markets

The US dollar remained stagnant in Asian trading on Wednesday as investors awaited two crucial economic indicators: July's PCE inflation data and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium on Friday.

Currency markets have been range-bound due to these upcoming events, which will significantly impact interest-rate expectations. The dollar index (DXY) has hovered near a three-month low after the US Treasury capped long-term US bond yields, reducing the return advantage that typically supports the greenback.

Australia's dollar rose 0.3% to $0.7183 following 'trimmed-mean' consumer inflation data, which came in at 3.6% year-over-year. This increase suggests that the Reserve Bank of Australia will maintain a tighter monetary policy, widening the gap between Australian and US interest rates.