Asian foreign-exchange markets remained largely quiet Wednesday, with the dollar gaining roughly 0.1% against a basket of peers as traders positioned ahead of Chinese President Xi Jinping's arrival in Washington later the same day.
The yen strengthened about 0.2% to 157.62, while the yuan rose 0.05%. The Australian dollar fell 0.15%, the Singapore dollar climbed 0.08%, the Indian rupee was flat to slightly higher, and the South Korean won saw little direction. Regional volumes were thin, weighed by a Japanese market holiday.
The focal point of the session was the first official U.S. visit by President Xi during Donald Trump's second presidency. Traders are watching for progress on a range of issues, including artificial intelligence cooperation, trade terms, an extension of the current U.S.-China trade truce before its early-November expiration, rare-earth export controls, agricultural purchases, and the Iran conflict — following U.S. talks with Iranian counterparts on the sidelines of a United Nations meeting in New York.
In Australia, the Australian dollar softened after data showed the country's manufacturing Purchasing Managers' Index slumped into contraction in September, while services growth slowed sharply from the prior month. Overall business activity remained in expansion, but sticky inflation and rising borrowing costs continue to weigh on the economy.
Reserve Bank of Australia Governor Michele Bullock reiterated concerns about persistent price pressures in remarks on Tuesday. The central bank is widely expected to raise rates by another 25 basis points when it meets next week, marking a fourth hike this year.
Elsewhere in the region, Singapore's August consumer-price-index data was due later Wednesday, adding to the day's limited macroeconomic catalysts.
