AUD Consolidates Gains as USD Weakens on Soft US Inflation

The Australian Dollar traded roughly flat against a weaker US Dollar on Thursday, consolidating gains from earlier in the week. The move comes as traders dialled back bets on an imminent Fed rate hike after the latest US inflation print came in softer than expected.

A softer dollar environment typically supports risk-sensitive currencies like the Aussie. However, the lack of strong upward momentum suggests the market is awaiting further catalysts, possibly from domestic data or central bank commentary.

The AUD/USD pair remains in a tight range as the short-term direction hinges on the next round of economic releases and Fed guidance.