The dollar held near its lowest in more than a year against a basket of peers on Wednesday, with sterling trading just off multi-year highs, as markets focused on clues to the size of a widely expected US interest rate cut next month.
Cryptocurrency bitcoin took the spotlight in Asia, dropping over 4 percent after breaking below support around $60,000.
The Australian dollar rose to an eight-month high after data showed domestic inflation slowed to a four-month low in July, but the general progress on tempering price gains disappointed. It was last flat at $.06793.
“The Reserve Bank of Australia is unlikely to pivot at the September meeting, which could add another layer of strength for the AUD in the short-term along with cyclical USD weakness and stable global growth dynamics,” said Charu Chanana, Saxo’s head of FX strategy.
Elsewhere, overall moves in the foreign exchange market were muted as traders awaited fresh hints on the state of the world’s largest economy.
