Dollar holds near 98.9 as markets await July PCE data

The U.S. dollar remained rangebound in early Asian trading, with the Dollar Index at 98.918 after ending a three-day winning streak, as investors awaited July Personal Consumption Expenditures (PCE) inflation data and the Jackson Hole symposium. Signs of Middle East de-escalation weighed on oil and reduced safe-haven demand, with Brent crude down 2.1% at $86.68. The Australian dollar rose 0.1% to $0.7172 after trimmed-mean CPI increased at a 3.6% annualised rate, while the New Zealand dollar fell 0.2% to $0.5962 amid weaker Chinese indicators, softer risk sentiment and expectations for a Reserve Bank of New Zealand rate decision. The euro and sterling were little changed, the yen held near 159.14, and Bitcoin and ether extended monthly gains. Markets were assessing whether the PCE data could reinforce a higher-for-longer Federal Reserve stance or revive expectations for rate cuts.

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