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Australian Dollar slips as US Dollar steadies post CPI
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FXStreet Forex & Commodities News
AUD/USD is trading near the 0.7070 zone, holding onto a minority of Wednesday's gains after the pair touched a session high near 0.7090.
The read initially knocked the US Dollar (USD) lower and tempered rate-hike bets.
Core producer prices are expected to slow sharply on an annual basis, a reading that would add to the disinflation case already building after Wednesday's CPI.
The bank points to "signs of normalization in services prices along with tariff pass-through that remains under control," arguing that these dynamics "bode well for concerns around sticky core inflation."
A deeper pullback would expose the more distant 100-period SMA support at 0.7016.