THE dollar slipped during quiet Asian trading yesterday as dealers waited for testimony by US Federal Reserve chairman Ben Bernanke, due overnight last night.
Analysts and traders believe that Mr Bernanke's comments will be critical for setting a fresh tone on global currency markets.
"Any insight gained from Mr Bernanke's address could have a significant bearing on all markets globally," CMC Markets premium client manager William Leys said in a note.
Economists expect the Fed chairman to commit to continued bond buying to boost growth in the US, even as the country's economy picks up. If Mr Bernanke does, it will weigh on the US unit and support the Australian dollar.
However, suggestions that policymakers are closer to reining in quantitative easing would boost the US currency and hurt the Aussie, Mr Leys said.
