Investing.com - The U.S. dollar was trading near seven week lows on Wednesday in Asia, while the Aussie dollar inched up despite weaker-than-expected GDP data.
The U.S. dollar index was little changed at 96.990 by 1:16 AM ET (05:16 GMT) within reach of an overnight low of 96.887, its weakest since April 18. The index has now fallen 1.3% from a more than two-year high of 98.371 touched on May 23.
Fed Chairman Jerome Powell on Tuesday pledged that the central bank will “act as appropriate” to protect the economy from the disruption caused by trade wars, dropping his standard reference to being "patient" in approaching any interest rate decision.
Traders have been watching closely for signs the Fed could ease up on its monetary policy in light of inflation. St. Louis Federal Reserve President James Bullard said on Monday that an interest rate cut could be warranted in light of recent circumstances.
The AUD/USD pair edged up 0.1% to 0.6996 despite data that showed the country’s first quarter GDP came in at a softer-than-expected 0.4% quarter-on-quarter. Markets expected a 0.5% increase.
Year-on-year, GDP growth was at 1.8%, in line with expectations.
The Reserve Bank of Australia cut benchmark cash rates to a record low of 1.25% on Tuesday and suggested willingness to cut further if outlook continue to worsen.
The USD/CNY pair inched up 0.1% to 6.9110 as traders await more trade-related news. U.S. Treasury Secretary Steven Mnuchin is set to meet with the People’s Bank of China governor Yi Gang during the Group of 20 gathering of finance ministers and central bankers in Japan over the weekend, the Treasury Department said on Tuesday night.
The GBP/USD pair was up 0.1% to 1.2706. The currency pair received some support following reports that U.S. President Donald Trump was committed to a trade deal with the U.K. after it leaves the European Union. Trump is in the U.K. on a state visit.
The USD/JPY pair slipped 0.1% to 108.06.