Global Currencies on Edge Ahead of Major Economic Announcements

The dollar approaches a two-week high against the yen amid expectations of U.S. inflation data impacting Federal Reserve decisions. The Australian dollar slips following the RBA's dovish stance, while global markets react to central banks' upcoming interest rate announcements and China's economic conference developments.

The dollar remained near a two-week high against the yen on Wednesday, poised before crucial U.S. inflation data could shed light on the Federal Reserve's potential interest rate cuts. Meanwhile, the Australian dollar hovered near a four-month low following a dovish policy update from its central bank.

With China's Central Economic Work Conference underway, Beijing's promises of fiscal and monetary support initially lifted Antipodean currencies earlier this week; however, Australia's Reserve Bank tempered investor enthusiasm with a cautious statement on Tuesday.

Market attention is also turning to the European Central Bank's policy decision and other global central banks' rate moves as key economic indicators continue to shape currency valuations globally.

(With inputs from agencies.)