• DXY regains positive traction amid some repositioning ahead of the US PCE Price Index. 
• The recent hawkish comments by Fed officials back the case for one rate cut this year.
• Hence, the crucial inflation data will play a key role in driving the USD in the near term.

The US Dollar (USD) attracts fresh buyers following the previous day's softer US macro data-inspired downfall and climbs to a fresh two-month peak during the Asian session on Friday. The USD Index (DXY), which tracks the Greenback against a basket of currencies, is currently placed just above the 106.00 mark, up 0.15% for the day, as traders look to the crucial US inflation data for some meaningful impetus. 

The Federal Reserve's (Fed) preferred inflation measure – the Personal Consumption Expenditure (PCE) Price Index – will be released later during the early North American session at 12:30 GMT. A lower-than-expected PCE deflator or a number that is in line with market expectations will back the case for two rate cuts by the Fed this year, which, in turn, could weaken the USD. Meanwhile, any upward surprise should push back the expected timing for the first Fed cut and trigger a fresh leg up for the buck