The US Dollar is on the back foot, and hotter Australian inflation data released earlier has pushed up the Aussie as markets see a more hawkish rate path.

Markets are navigating shifting policy signals as the UK lifts wages, U.S. rate-cut bets rise, Japan inches toward a BOJ hike, and China’s yuan strengthens despite bond-market strain.

Asian markets trade higher on Wednesday, following an overnight rally on Wall Street on rising US Fed rate cut bets.