Ella 
On Monday, the Australian dollar recovered from the previous session’s losses. The AUD/USD currency pair is still trading higher on Monday, despite the U.S. dollar (USD) falling slightly on rising U.S. bond yields. Investors will be closely watching Australian consumer price index (CPI) data for February and U.S. monthly gross domestic product data for the fourth quarter of 2023.
The Australian dollar gained momentum as the ASX 200 extended its winning streak, led by gains in the mining and energy sectors. In addition, the Australian dollar was also supported by a stronger yuan as the onshore yuan central parity rate set by the People’s Bank of China (PBoC) was significantly higher than expected.
The U.S. dollar index retreated after hitting a five-week high of 104.49 in the previous session. The U.S. dollar (USD) may face downward pressure as U.S. economic data affects expectations that the Federal Reserve (FED) is expected to start an easing cycle in June. Federal Reserve Chairman Jerome Powell assured markets that the central bank would not react hastily to two consecutive months of rising inflation data.
