TOKYO, Aug 26 — The dollar nursed losses against most currencies today as traders braced for US data expected to show a slowdown in durable goods orders and a key speech by Federal Reserve Chairman Jerome Powell.

The greenback took a hit after data yesterday showed US consumer confidence tumbled to the lowest in more than six years due to concern about the coronavirus-induced job losses.

Traders will look to Powell’s speech tomorrow at the annual Jackson Hole retreat to determine what steps the Fed is willing to take to safeguard a fragile economic recovery.

“I expect Powell to use forward guidance to send a dovish message that rates will remain low for a long time, which feeds into dollar weakness,” said Minori Uchida, head of global market research at MUFG Bank in Tokyo.

“You could say we are in a long-term correction of excessive dollar strength.”

Against the euro, the dollar stood at US$1.1833 in Asia today following a 0.4 per cent decline in the previous session.

The British pound bought US$1.3149 having risen 0.7 per cent against the dollar yesterday.

Sterling has managed to shrug off a lack of progress in trade negotiations between Britain and the European Union.

The dollar bought 0.9082 Swiss franc, close to the lowest in more than five years against the safe harbour currency.

The dollar managed to hold onto slim gains against the yen, last trading at 106.35.

Powell’s speech at Jackson Hole — held online due to the coronavirus outbreak — is by far the biggest event of the week, but the data calendar leading up to tomorrow has been discouraging.

Data later today are forecast to show growth in US durable goods orders slowed in July, following from the US consumer confidence report for August, which fell to the lowest since May 2014 — highlighting policymakers’ concerns about the economy.

Investors in Asia will closely monitor the yuan when it opens trade to see if the Chinese currency continues to ride a wave of optimism after Washington and Beijing affirmed their trade deal.

Trading in other currencies could be subdued due to a lack of major economic releases during the Asian session.

The Australian dollar edged up to US$0.7205 but is likely to remain in a narrow range as markets monitor a coronavirus outbreak in the state of Victoria. — Reuters