By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — The dollar slipped in Asian trading hours Friday in cautious action ahead of a key speech from Federal Reserve Chairman Ben Bernanke due later in the global trading day.
The ICE dollar index DXY -0.07% , which measures the greenback against a basket of six other major currencies, traded at 81.620, down from 81.704 in late North American trading Thursday.
The WSJ dollar index XX:BUXX -0.09% , which uses a slightly larger basket, reached 71.09, from 71.17 late the previous session.
“The proximity of Jackson Hole [where Bernanke is due to speak] has cast an apathetic shadow on markets,” said Michael Turner, a strategist at RBC Capital Markets.
“The debate is now over the diminishing marginal returns of further action, and the focus will therefore be on the weight that Bernanke attaches to the various pros and cons, should he outline them in more detail,” Turner said.
“His recent written response to a politician suggests that he still sees merit in further asset purchases, and as our U.S. economists point out, data haven’t been that great since the [Federal Open Market Committee] last met,” said Turner.
The euro EURUSD +0.03% traded at $1.2517, up from $1.2504 late Thursday, while the British pound GBPUSD +0.01% advanced to $1.5792, up from $1.5788.
The Japanese yen also gained ground, as the dollar USDJPY -0.23% bought ÂĄ78.41, down from ÂĄ78.65 late Thursday.
Data out Friday showed an unexpected drop in Japanese industrial output in July, although household spending for the same month was stronger than expected. Read more on Japanese data.
The Australian dollar AUDUSD +0.21% changed hands at $1.0298, down slightly from $1.0295 late Thursday.
Sarah Turner is MarketWatch's bureau chief in Sydney.
