US Dollar (USD) continued to inch higher against most currencies overnight in quiet trading as markets stay sidelined, waiting for Powell’s speech at Jackson Hole. DXY was last at 98.33 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Mild upside risks likely in the interim

"We had earlier indicated there are expectations for Powell to pivot dovish but cautioned that also leaves room for market disappointment, given that market remains short USD. Worries about Powell not playing ball (i.e. not giving a clear or decisive view on policy bias) may see USD trade sideways until we get clarity from Powell."

"Mild bearish momentum on daily chart shows signs of fading while RSI rose. 2-way trades, with mild upside risks likely in the interim. Resistance here at 98.30 levels (21 DMA), 99.10 (100 DMA). Support at 97.60, 97.10 levels.' Focus for the week on FOMC minutes, prelim PMIs, Philly Fed business outlook (Thursday); Powell’s speech at Jackson Hole (Friday)."