- AUD/USD continues to fluctuate below 0.7300 on Thursday.
- US Dollar Index retreats below 93.00 during European session.
- Annual Core CPI in US is expected to tick up to 1.8% in October.
The AUD/USD pair closed virtually unchanged below 0.7300 on Wednesday and edged slightly lower during the first half of the day on Thursday. After touching a fresh six-day low of 0.7247, however, the pair erased a portion of its daily losses and was last seen losing 0.12% on the day at 0.7270.
The data from Australia on Thursday showed that the Consumer Inflation Expectations in November rose to 3.5% and came in higher than the market expectation of 3.2%. Nevertheless, the market reaction to this data was relatively muted.
Meanwhile, major European equity indexes are posting modest losses on Thursday and the S&P 500 futures are down 0.1%, reflecting a cautious market mood that makes it difficult for the risk-sensitive AUD to find demand.
Focus shifts to US CPI data
In the second half of the day, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) data for October. Investors expect the Core CPI to edge higher to 1.8% from 1.7% in September. However, the Federal Reserve is using the Personal Consumption Expenditures (PCE) Price Index as its preferred gauge of inflation and market participants are likely to ignore the CPI figures unless there is a large divergence.
Additionally, the Department of Labor will publish its weekly Initial Jobless Claims data as well.
Technical levels to watch for
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