The US dollar held steady early in the Asian session after the PPI data fell 0.1% in August, reinforcing expectations that the Fed would cut interest rates next week. The Dollar Index edged up to 97.822, marking a third consecutive day of gains. The market now awaits the release of the US CPI later tonight (WIB) for confirmation of its next direction.

Market participants consider a 25 bps cut at the September 16-17 meeting almost certain. The chance of a 50 bps cut is only around 8%. Analysts' comments suggest the "benign" PPI result is in line with market pricing, shifting focus to the CPI to determine the size of the interest rate cut.

On the policy front, the White House is appealing a judge's ruling blocking President Donald Trump's attempt to fire Governor Lisa Cook. Meanwhile, Stephen Miran's nomination is advancing in the Senate Banking Committee, although it is unlikely to be finalized in time for this Fed meeting.

In the currency market, USD/JPY was flat at 147.41 after Japanese wholesale prices rose 2.7% year-on-year in August. The euro strengthened slightly to $1.1698 ahead of the ECB's expected interest rate decision. The Australian dollar traded at $0.66165, supported by a commodity rally; the offshore yuan at 7.1184; the New Zealand dollar at $0.59375; and the British pound at $1.3527. European geopolitics remained in the background, including reports that Poland shot down a suspected Russian drone. (ayu)

Source: Newsmaker.id