The US dollar is staying cautious along the sidelines on Wednesday morning in Asia awaiting further clarity from US data due later this week that could throw some light on Federal course of action. US 10-year Treasury note yield steadied around 4.3% on Wednesday, finding some support after Federal Reserve Chair Jerome Powell reiterated the central banks cautious approach on interest rate cuts. Powell said the Fed needs more supporting data that inflation is moving sustainably toward 2% before reducing rates. However, he warned that maintaining restrictive policy for too long could unintentionally weaken economic activity and employment. Investors now look ahead to Powells appearance before the House on Wednesday, as well as key US inflation figures later this week for further clues on the monetary policy path. Currently, dollar index futures are quoting at 104.81, flat on the day. Among the basket currencies, EURUSD and GBPUSD are trading marginally higher at $1.0851 and $1.2797 …
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