The Australian dollar AUD= was up 0.1% at $0.7172 after the release of data showing the trimmed mean CPI inflation measure rose at an annualised rate of 3.6%.
Its kiwi counterpart NZD= was down 0.2% at $0.5962 ahead of an interest rate decision from the Reserve Bank of New Zealand next Wednesday. The market overwhelmingly expects the central bank to hike interest rates by 25 basis points to 2.75%, according to LSEG data.
However, the U.S. dollar weakened 0.1% against the Canadian dollar CAD= to C$1.38405 per dollar, retracing some of its gains against the loonie over the past two days after Ottawa hit back on Tuesday with retaliatory tariffs on about $20 billion worth of U.S. annual imports and rolled out aid for businesses and workers, after trade talks with Washington collapsed last week.
The euro EUR= was flat at $1.1675, while the British pound GBP= was also unchanged at $1.3647.
The yen JPY= was steady at 159.14 yen, remaining firmly below levels that triggered joint intervention by U.S. and Japanese officials in the past month. Influential currency investor Stephen Jen said that the move marked a "watershed moment" for the currency.
The central bank said on Wednesday that Governor Kazuo Ueda will not attend the U.S. Federal Reserve's annual Jackson Hole gathering this week due to a schedule conflict. Bank of Japan board member Naoki Tamura will attend on his behalf.
A majority of economists in a Reuters poll said the Bank of Japan will likely move more swiftly than previously expected and raise interest rates again in September, with the terminal rate also likely to be higher.
Cryptocurrencies continued to roar back to life as investors revived dollar debasement trades. Bitcoin BTC= was up 0.8% at $78,829.03, while ether ETH= was up 0.7% at $2,453.10. So far this month, they are up 25% and 31%, respectively.
However, gold slipped 0.5% to $4,633.94, paring its monthly gains to 15%.
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