$US Traded Flat as Investors Await Inflation Data Ahead of Jackson Hole

The US dollar traded in a narrow range on Wednesday as investors awaited key inflation data that could influence Federal Reserve policy.

The Australian dollar surged to its highest level in three months after data showed a faster-than-expected rise in the trimmed mean CPI gauge, which is the Reserve Bank of Australia's preferred measure of cost-of-living pressures.

Analysts at Capital Economics warned that with underlying inflation showing no signs of slowing, there may still be a risk of another rate hike from the RBA over the coming months.

The dollar was generally range-bound against major peers, although it did rise 0.3% against the Swiss franc to 0.8036 francs and climbed 0.1% against the Japanese yen to 158.95 yen.