The dollar edged broadly lower on Tuesday but traded in a narrow range, as investors remained cautious ahead of key U.S. inflation data due later in the day just as the Federal Reserve kicks off its two-day monetary policy meeting.
The U.S. Labor Department's CPI report is expected to show that inflation cooled slightly in May, which could give the Fed room to pause its aggressive rate-hike cycle when it announces its interest rate decision on Wednesday.
Those expectations kept risk sentiment buoyant, pinning the U.S. dollar near multi-week lows against the risk-sensitive Australia and New Zealand dollars.
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