The Fed’s hawkish pause in interest rate hikes supported the U.S. dollar, with the U.S. Dollar Index holding above the 102 mark.

The U.S. Dollar Index edged higher during Thursday’s Asian trading session, though it failed to extend its gains and remained above the 102.00 psychological level. Additionally, the index stays near the two-week high it hit on Wednesday, as traders await key U.S. macroeconomic data releases for fresh directional drivers. The U.S. advance third-quarter GDP and Personal Consumption Expenditures (PCE) price index are scheduled to be released later today. As markets price in a Federal Reserve rate hike in December, investors will closely watch these figures for more clues on the central bank’s future policy path. Accordingly, strong data would further reinforce market expectations and lift the Dollar Index. Meanwhile, given the Fed’s hawkish pause signal delivered on Wednesday, even if the key data comes in below forecasts, the market’s immediate reaction may be relatively limited. Separately, regional mediators led by Qatar are working to push for the resumption of U.S.-Iran talks to prevent a renewed outbreak of war. However, geopolitical risk premiums persist, meaning that even if the Dollar Index sees a technical pullback, it is more likely to attract dip-buying, keeping its losses relatively contained. (Source: Jin10)