A gauge of the dollar slipped to its lowest since March as analysts expected Federal Reserve Chair Jerome Powell to provide clues on policy easing when he speaks at Jackson Hole this week.

The Bloomberg Spot Dollar Index fell as much as 0.2%. The Australian dollar was being bought against the euro, pound and Canada's dollar by leveraged accounts backing divergent central bank outlooks to fuel the crosses higher, according to Asia-based FX traders

Goldman Sachs Group Inc. economists lowered the probability of a US recession in the next year to 20% from 25%, citing this week's retail sales and jobless claims data. They also said they were "more confident" the Fed will cut interest rates by 25 basis points at their September policy meeting.

Treasury two-year yields added two basis points to 4.07% while the 10-year yields were up one basis point to 3.89%.

AUD/USD rose 0.2% to 0.6683; NZD/USD up 0.3% to 0.6069.

USD/JPY lost 0.2% to 147.38.

Demand from Tokyo-based funds helped to take AUD/JPY up as much as 0.5%, reaching its highest in the rebound following a plunge to 90.154 a fortnight ago, the traders said.

The move comes ahead of a speech by Bank of Japan governor amid expectations Kazuo Ueda may dampen recent hawkish commentary.

Some information comes from FX traders familiar with the transactions who asked not to be identified because they aren't authorized to speak publicly.

Source: Bloomberg