AUDUSD Chart Technical Outlook is set to pare losses if US inflation data meets the expectation
The Aussie Dollar lost ground on Thursday, with the USD appreciating across the board as President Biden struggled to defend himself against an aggressive Trump in the first debate of the presidential campaign.
Investors felt that the Republicans came out better from the debate, which meant higher tariffs and increasing inflation risks. That triggered an uptick in US Treasury yields and pushed the US Dollar higher
US data supported the Greenback with Durable Goods orders increasing against expectations and weekly jobless claims confirming a tight labor market.
The focus today is on the US PCE Prices Index data, which is expected to show a cooling inflation trend. This would increase confidence that the Fed might start cutting rates in September and trigger a USD reversal.
Today is also the last trading day of the quarter and we might see some profit-taking on the US Dollar after a storing quarterly performance.
