• The index trades slightly bid near the 102.60 region.
• Investors remain cautious amidst China and Powell.
• Fed’s Powell will testify before congress later in the session.

The greenback, when tracked by the USD Index (DXY), manages to keep the weekly recovery well in place around the 102.60 region on Wednesday.

USD Index focuses on Powell

The index so far advances for the fourth session in a row on Wednesday, as investors’ concerns over the recovery in China remain well in place along with rising prudence ahead of the first semiannual testimony by Chair J. Powell.

On the latter, consensus among traders anticipates a hawkish tone from Powell. Despite maintaining interest rates at their previous meeting last week, policymakers' projections indicate the likelihood of approximately two more 25 bps rate hikes or alternatively, a single half-point increase.

In the US data space, MBA Mortgage Applications is due along with the weekly report on US crude oil inventories by the API