FOREX-Dollar drifts ahead of key Fed speech as economic worries grow

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Economic data undermines dollar
* Traders expect dovish tone from Fed's Powell
* Yuan rises toward seven-month high on trade deal relief
* Coronavirus discourages risky trades

By Stanley White
TOKYO, Aug 26 (Reuters) - The dollar held steady against
most currencies on Wednesday as traders braced for U.S. data
expected to show a slowdown in durable goods orders and a key
speech by Federal Reserve Chairman Jerome Powell.
The yuan rose toward a seven-month high after U.S. and
Chinese trade officials reaffirmed their commitment to a Phase 1
trade deal, which eased concerns about a diplomatic standoff
between the world's two-largest economies.
The greenback took a hit after data on Tuesday showed U.S.
consumer confidence tumbled to the lowest in more than six years
due to concerns about coronavirus-induced job losses.
Traders will look to Powell's speech on Thursday at the
annual Jackson Hole retreat to determine what steps the Fed is
willing to take to safeguard a fragile economic recovery.
"I expect Powell to use forward guidance to send a dovish
message that rates will remain low for a long time, which feeds
into dollar weakness," said Minori Uchida, head of global market
research at MUFG Bank in Tokyo.
"You could say we are in a long-term correction of excessive
dollar strength."
Against the euro EUR=D3 , the dollar stood at $1.1816 on
Wednesday following a 0.4% decline in the previous session.
The British pound GBP=D3 bought $1.3138 having risen 0.7%
against the dollar on Tuesday.
Sterling has managed to shrug off a lack of progress in
trade negotiations between Britain and the European Union.
The dollar bought 0.9090 Swiss franc CHF=EBS , close to the
lowest in more than five years against the safe harbour
currency.
The dollar was locked into a narrow range against the yen,
last trading at 106.43 JPY=EBS .
Powell's speech at Jackson Hole - held online due to the
coronavirus outbreak - is by far the biggest event of the week,
but the data calendar leading up to Thursday has been
discouraging.
Data later on Wednesday is forecast to show growth in U.S.
durable goods orders slowed in July, following from the U.S.
consumer confidence report for August, which fell to the lowest
since May 2014 - highlighting policymakers' concerns about the
economy. The onshore yuan CNY=CNFX rose to 6.9002 per dollar,
approaching a seven-month high after Washington and Beijing
affirmed their trade deal. The mood also brightened after Ant Group, Alibaba's fintech
arm and China's dominant mobile payments firm, filed for a dual
listing in Hong Kong and Shanghai to raise as much as $30
billion in what would be the world's largest initial public
offering. The Australian dollar AUD=D3 was little changed at $0.7195
as traders monitor a coronavirus outbreak in the state of
Victoria.
The New Zealand dollar NZD=D3 last bought $0.6552.