The U.S. dollar traded below a one-week high while Asian equities showed mixed performance as investors awaited the Federal Reserve’s annual Jackson Hole symposium.

The event, featuring central bankers globally, will be closely watched for signals on interest rate policy, particularly Fed Chair Jerome Powell’s Friday speech regarding potential September rate cuts.

Australia’s benchmark index rallied 0.9% to a record high, while South Korea’s KOSPI gained 0.7% after recently touching a six-week low.

Japan’s Nikkei declined 0.6% after reaching an all-time peak earlier this week. Despite some consolidation, major indexes remain near recent highs as underlying equity momentum persists.

Markets currently price an 80% probability of a September Fed rate cut, down slightly from 84% following July meeting minutes showing limited support for immediate easing among policymakers.

Traders anticipate approximately 53 basis points of total rate reductions through year-end, reflecting expectations for gradual monetary policy normalization.

The symposium occurs amid strong recent equity performance, with analysts viewing current market softness as a healthy consolidation rather than a trend reversal.

Powell’s remarks will be scrutinized for clues on the timing and pace of rate cuts, particularly whether the Fed maintains its data-dependent approach amid mixed economic signals and evolving inflation trends.

Source: Reuters.