Investing.com– Most Asian currencies kept to a tight range on Wednesday, while the dollar steadied in anticipation of more signals from the Federal Reserve and U.S. inflation on the path of interest rates.

The New Zealand dollar lagged its peers, falling sharply after the Reserve Bank of New Zealand cut interest rates and struck a dovish tone. 

Sentiment towards regional currencies was stymied by easing optimism over more stimulus measures in China, as the government gave scant details on its plans to implement more economic support. The yuan was also nursing steep losses from the prior session. 

Dollar steady with Fed minutes, inflation on tap 

The and moved little in Asian trade, steadying near a seven-week high hit on Monday.

Gains in the dollar came after strong payrolls data sparked doubts over just how much impetus the Fed has to keep cutting interest rates sharply. Traders were seen pricing in an 83.2% chance the Fed will cut rates by 25 basis points in November, and a 16.8% chance rates will remain unchanged, showed. 

The of the Fed’s September meeting- where the central bank had cut rates by 50 bps- are due later on Wednesday, offering up more cues on its plans. 

inflation data for September is due later this week, and is also likely to factor into the Fed’s outlook. 

New Zealand dollar weakens after RBNZ rate cut

The New Zealand dollar’s pair slid 1% on Wednesday after the RBNZ and struck a dovish tone.

The 50 bps cut was at the upper end of market expectations, with the bank citing softening inflation and economic growth as its motivation. 

Wednesday’s cut is also the RBNZ’s second cut this year, with the central bank offering mixed signals on whether interest rates will fall further.

Chinese yuan steadies after sharp losses; stimulus cheer wanes 

The Chinese yuan weakened slightly on Wednesday, with the pair rising 0.1%. The pair had surged 0.6% in the prior session, as onshore trade resumed after the Golden Week holiday.

Sentiment towards China was stymied by Beijing offering few details on how it plans to implement recently-unveiled stimulus measures- which include rate cuts and more liquidity support. 

But lower interest rates also present more headwinds for the yuan. 

Broader Asian currencies kept to a tight range, while commodity-linked units, like the Australian dollar, weakened on concerns over China. The pair fell 0.2%.

The Japanese yen’s pair moved little after weakening substantially against the dollar over the past week. 

The Indian rupee’s pair hovered near record highs before a , where the central bank is widely expected to keep rates steady.