Ella 
During Asian trading on Wednesday, the Australian dollar pared gains against the U.S. dollar and traded near 0.6800, after reversing and soaring to a seven-month high of 0.6813.
After Australia’s monthly Consumer Price Index (CPI) data was released, the Australian dollar ushered in a new wave of buying against the US dollar and regained the 0.6800 mark.
Inflation data showed that consumer prices in Australia cooled slower than expected in July, growing at an annual rate of 3.5%, compared with 3.4% expected and 3.8% forecast.
Improved Australian inflation data has reignited market expectations for further interest rate hikes by the Reserve Bank of Australia, pushing the Australian dollar (AUD) to a new round of gains.
However, markets remain risk-off, limiting upside for the higher-yielding Australian dollar while also boosting safe-haven demand for the U.S. dollar.
The market was anxious about the much-anticipated earnings report of US artificial intelligence giant Nvidia, causing its stock price to fall. The earnings report sent global stock markets lower. Traders are also awaiting a series of speeches from Federal Reserve officials for new clues on the size of an upcoming rate cut in September.
Looking ahead, AUD/USD will remain influenced by U.S. dollar price action driven by the Fed’s speech and broader market sentiment in preparation for Australia’s second-quarter private capital investment data on Thursday.
Technically, AUD/USD remains on the upside as the 14-day Relative Strength Index is above its midline of 50 and below overbought territory, currently around 67. In addition, the daily time frame forms a golden cross, which also adds credibility to the bullish outlook for AUD/USD.
