Cautious Fed Remarks Stabilize U.S. Dollar; Australia's Inflation Surprises

On Wednesday, the U.S. dollar saw a modest rise after Federal Reserve Chair Jerome Powell adopted a cautious stance on further interest rate cuts. Traders are expecting two more rate reductions this year, but Powell's comments indicated a careful balance between addressing high inflation and a weakening job market.

Australia's currency firmed following an unexpected spike in consumer inflation, thereby raising questions ahead of the Reserve Bank's upcoming policy decision. Australia's headline inflation climbed to 3% in August, although core inflation eased slightly to 2.6%.

The New Zealand dollar remained steady after Finance Minister Nicola Willis announced the appointment of Anna Breman as the country's first female central bank governor. Breman will assume her new role on December 1, bringing a fresh perspective to New Zealand's monetary policy landscape.

(With inputs from agencies.)