A weak consumer price index (CPI) dipped the Aussie on Wednesday, while the US dollar remained near four month high despite slight overnight tumble.

The US dollar index ranged between 96.90 and 97.34 before closing the afternoon session in the US 0.11 percent lower at 97.17. On Tuesday the greenback was supported by the US Commerce Department’s report of a rise of 3.5 percent in new home sales which went up to 592,000 units last month. May figure was revised up to 572,000 units.

The Conference Board had also reported that its index of consumer confidence was slightly lower from 97.4 in June to 97.3 in July.

In Australia data showed that the CPI for the second quarter was 0.4 percent higher quarter on quarter, and 1.0 percent year on year which didn’t match expectations of a 1.1 percent increase.

AUD/USD lost 0.08 percent trading at 0.7497 while USD/JPY was 0.52 percent higher at 105.18.

The data kept the possibility of a rate cut in August by the Reserve Bank of Australia (RBA) alive. Meanwhile traders were eying the upcoming Federal Reserve meeting which will begin later in the day.

The Federal Open Market Committee (FOMC) is expected to keep its rate at the same level this meeting. The odds are on a September rate hike, which according to the CME Group’s Fed Watch tool is 25.2 percent likely to happen, while a December rate hike (a year after the first rate hike in a decade) has a 41.7 percent chance of happening.

A US rate hike is viewed as bullish and will help push the dollar further up.

Elsewhere GBP/USD was 0.04 percent lower at 1.1316 and EUR/USD lost 0.05 percent falling to 1.0988.

The US dollar index which measures the greenback against a basket of six other major currencies added 0.06 percent on Wednesday trading at 97.23.