USD weakens as NASDAQ tests 200-hour MA amid pre-Jackson Hole caution

Major US indices declined 0.45-0.48% in Wednesday's session, with the NASDAQ falling 102 points to 21,071.50 and testing its 200-hour moving average. The S&P 500 dropped 20.2 points to 6,367.48, trading between its 100 and 200-hour moving averages. The technical weakness in equities coincided with dollar softness as traders positioned cautiously ahead of Fed Chair Powell's Jackson Hole speech on Friday. Market participants are seeking clarity on the Fed's rate trajectory amid mixed economic signals. The NASDAQ's interaction with its 200-hour MA represents a critical technical juncture that could influence risk sentiment. A sustained break below this level might trigger further equity weakness and potential safe-haven flows into the dollar, while a bounce could support risk-on currencies like AUD and NZD against the greenback.