By Kevin Buckland

TOKYO (Reuters) -The U.S. dollar held steady on Tuesday, with markets braced for a key consumer inflation report later in the day that could shape expectations for Federal Reserve interest rate cuts.

The Australian dollar was steady hours before a policy decision by the Reserve Bank of Australia.

The U.S. dollar index – which measures the currency against six counterparts, including the euro and yen – was steady at 98.497 as of 0046 GMT, after advancing 0.5% over the past two sessions.

Prior to that, the dollar had retreated as U.S. President Donald Trump’s dovish-leaning pick to replace a Fed governor, and similarly inclined potential candidates for chairman, led traders to increase easing bets.

In addition, Fed officials have sounded increasingly uneasy about the l

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