U.S. Dollar Extends Fall As Investors Await Fed Chair Powell Speech

(RTTNews) - The U.S. dollar extended its weakness against its major counterparts in the Asian session on Tuesday, as investor sentiment rose awaiting U.S. Fed Chair Jerome Powell's speech at the Jackson Hole Symposium due later this week for more clues about the economy and interest-rate outlook.

Federal Reserve chairman Jerome Powell is scheduled to speak at the three-day meeting of central bankers in Jackson Hole, Wyoming, symposium starting on Friday.

Powell's comments will be closely scrutinized for signals on the central bank's interest rate plans in the near future.

In the Asian trading today, the U.S. dollar fell to 5-day lows of 1.0917 against the euro, 1.2778 against the pound and 0.8772 against the Swiss franc, from yesterday's closing quotes of 1.0891, 1.2754 and 0.8783, respectively. If the greenback extends its downtrend, it is likely to find support around 1.11 against the euro, 1.29 against the pound and 0.85 against the franc.

Moving away from an early 5-day high of 146.41 against the yen, the greenback edged down to 145.84. The greenback may test support near the 141.00 region.

The greenback dropped to a 4-day low of 0.6429 against the Australian dollar, from Monday's closing value of 0.6412. On the downside, 0.67 is seen as the next support level for the greenback.

Against the New Zealand and the Canadian dollars, the greenback edged down to 0.5943 and 1.3535 from yesterday's closing quotes of 0.5926 and 1.3543, respectively. The greenback is likely to find support around 0.60 against the kiwi and 1.33 against the loonie.

Looking ahead, Eurozone current account data for June is due to be released at 4:00 am ET.

In the New York session, U.S. existing home sales data for July and U.S. Richmond Fed manufacturing index for August are slated for release.

At 7:30 am ET, Federal Reserve Bank of Richmond President Thomas Barkin is scheduled to speak at Business@Breakfast: 2023 Economic Forecast update at the Danville Chamber of Commerce, in Danville, Virginia, U.S.

At 2:30 pm ET, Federal Reserve Bank of Chicago President Austan Goolsbee and Federal Reserve Board Governor Michelle Bowman will give opening remarks before event, "Fed Listens: Joining the Labor Force After Covid -- A Discussion on Youth Employment," hosted by the Federal Reserve Bank of Chicago, in Chicago, U.S.