US Dollar Index holds steady above 98.50, Jackson Hole Symposium in focus

• US Dollar Index trades flat near 98.65 in Friday's Asian session.
• US Composite PMI improved in August, led by a resurgent manufacturing sector. 
• Fed Chair Jerome Powell's speech will be the highlight later on Friday. 

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades on a flat note around 98.65 during the early Asian trading hours on Friday. Traders await the Federal Reserve (Fed) Chair Jerome Powell's speech later on Friday, with traders paring back wagers on an imminent interest-rate cut.

Data released by S&P Global on Thursday showed that the US Composite PMI climbed to 55.4 in August, versus 55.1 prior. Meanwhile, the US Manufacturing PMI rose to 53.3 in August from 49.8 in July. This figure came in stronger than the expectation of 49.5. Finally, the Services PMI declined to 55.4 in August from 55.7 in the previous reading but was stronger than the 54.2 expected.

Chicago Fed President Austan Goolsbee said late Thursday that September's Fed meeting remains open for action. Goolsbee added that the US central bank has been getting mixed messages on the economy, and the Fed still has time to take more data. Cleveland Fed President Beth Hammack noted that it's important to maintain a modestly restrictive policy to lower inflation, adding that he does not see an imminent case for cutting rates based on current data.

Stronger US economic data and a more hawkish tone from Fed officials could provide some support to the DXY. Markets are now pricing in nearly a 70% chance of a September rate cut, down from 90% a week ago, according to the CME FedWatch tool. 

The attention will shift to the Fed's annual Jackson Hole symposium later on Friday for clues on the policy outlook. Analysts expect that the dovish shift from Powell's remarks could weigh on the US Dollar in the near term.