The dollar is trading stable ahead of key data and Powell's speech during the day

The US dollar recovered from its three-week low against the yen on Wednesday and retained more strength against the rest of the currencies, with the likelihood of an interest rate cut by the Federal Reserve two weeks from now, as markets are now pricing in the likelihood of a quarter-point cut in interest rates to more than 73%.

Special payroll data from the ADP of the US economy is scheduled for release today followed by the ISM Non-Manufacturing Purchasing Managers study, Powell is likely to indicate that a rate cut is on the table at the December 18 meeting but the decision depends on the data.

Korean won

The South Korean won stabilized after falling to a two-year low on Tuesday and then partially climbed after South Korean President Yun Suk-Yul unexpectedly declared martial law.

Traders said that the country's central bank may have supported the won at the opening on Wednesday by selling the dollar.

Chinese yuan  

The Chinese yuan has settled near its lowest level in more than a year in foreign transactions, under pressure from renewed threats of tariffs from incoming US President Donald Trump, as traders watch to what extent Beijing may allow its currency to slide.

Australian dollar

The Australian dollar also fell against the dollar after data showed that the economy expanded less than economists estimated.

The European  

Euro As for the euro only, the euro maintained its position above two-year lows, as French lawmakers prepared to vote on no-confidence motions later in the day that are sure to topple the government.