The dollar consolidated as traders await producer and consumer price data, as well as Federal Reserve's minutes for clues on the outlook for interest rates as officials debate if they need to hike again.
The Bloomberg Dollar Spot Index was little changed and the yield on two-year Treasuries rose one basis point to 4.98%. While Federal Reserve Bank of Atlanta President Raphael Bostic said policy is restrictive enough to bring inflation back to their 2% goal, his Minneapolis counterpart Neel Kashkari said he wasn't yet convinced that a surge in long-term Treasury yields would lessen the need for further rate hikes.
Traders now await producer price data and the Fed's meeting minutes later Wednesday and then inflation readings later this week.
"Having brushed aside last week's exceptional NFP report, investors will be looking for softer PPI today and CPI tomorrow," said Philip Wee, a senior currency strategist at DBS Bank in Singapore. Mindful that GDP and PCE deflator will be released ahead of the Fed's next meeting, "a hike or a pause at the FOMC is still too close to call," he said.
AUD/USD down 0.1% at 0.6427.
RBA assistant governor for financial markets Chris Kent said some further policy tightening may be required.
USD/JPY steady at 148.72.
Source : Bloomberg
