The U.S. dollar was mostly steady against major currencies on Wednesday as investors awaited the minutes from the Federal Reserve's recent meeting for clues on the path of monetary policy.
The dollar index, which measures the greenback against a basket of currencies, rose slightly by 0.11% to 103.18. The euro edged down 0.08% to $1.0871. The dollar was also trading around 144.62 yen, below the level that recently prompted Japanese intervention.
The Australian dollar weakened after data showed Chinese services activity grew at its slowest pace in 5 months in June, indicating a slowdown in the Chinese economy. The Aussie dollar fell 0.24% to $0.6676 as the Chinese yuan also declined.
Analysts said the Chinese services data provided further evidence of a double-dip slowdown in China, which could prompt a policy response from Beijing. However, in the short term, the weaker Chinese outlook is weighing on the Australian dollar.
In summary, the dollar was mostly steady but the Australian dollar weakened due to concerns about China's economic slowdown and its impact on Australia. Investors are awaiting the Fed minutes for clues on the outlook for U.S. monetary policy.
