By Ambar Warrick

-- Most Asian currencies kept to a tight range on Monday as markets awaited more cues on U.S. monetary policy from a testimony by Federal Reserve Chair Jerome Powell, while a weaker-than-expected GDP forecast from China weighed on sentiment.

Cues on regional monetary policy are also due this week, with central bank meetings in and .

The fell 0.1% after the Chinese government set a 2023 GDP target of 5% over the weekend. The figure was seen as lower than market expectations, and highlighted a somewhat cautious stance by Beijing over an economic recovery this year.

China’s fell 0.3%.

The GDP forecast offset some optimism over a Chinese economy recovery, after grew at its fastest pace in over a decade in February after the lifting of anti-COVID restrictions.

Chinese and data is due this week, and is set to offer more cues on Asia’s largest economy.

Other China-exposed currencies retreated following the weak GDP forecast. The fell 0.1%, while the lost 0.2%. Australia's central bank is expected to hike interest rates further to combat rising .

The rose 0.2% ahead of the BOJ meeting on Thursday, where the bank is widely expected to hold interest rates at record lows.

The was flat as softer-than-expected data for February gave more credence to the decision to pause its interest rate hikes.

Broader Asian currencies kept to a tight range, while the dollar nursed recent losses ahead of on Tuesday. Any cues on interest rate hikes and the path of monetary policy will be closely watched.

The and fell less than 0.1% each on Monday.

The greenback had fallen sharply against a basket of currencies on Friday, amid some bets that U.S. interest rates will peak sooner than expected. But such a scenario is largely contingent on how inflation and the labor market will behave in the coming months.

Comments from Fed officials over the weekend suggested that interest rates will likely stay higher for longer - a scenario that is likely to limit any major upside in Asian currencies.

The region was hit hard by a spike in U.S. interest rates through 2022, with this pressure expected to continue in the near-term.