Ella 
AUD/USD ended two consecutive gains and retreated to around 0.6460 in early European trading on Wednesday. The pair was under downward pressure following weak Australian macroeconomic data released in Asia on Wednesday.
Australia’s inflation rate fell to a 17-month low in July, which could lead to the Reserve Bank of Australia holding hands at future meetings. Australia’s July CPI annual rate fell to 4.9%, lower than market expectations of 5.2% and the previous value of 5.4%, while July building permits fell by 8.1%, expected to drop by 0.8%, and the previous value fell by 7.7%.
The U.S. dollar index , which measures the greenback’s value against six major currencies, rose to around 103.70, after two days of losses. A rebound in U.S. Treasury yields pared recent losses and provided support for the dollar. However, dovish sentiment on the Fed’s policy stance weakened the safe-haven dollar.
Investors will be closely watching upcoming U.S. economic data for a clearer picture of the U.S. economic trajectory. Federal Reserve Chairman Jerome Powell’s comments at the Jackson Hole symposium emphasized that any upcoming interest rate decision will be guided by data-driven analysis.
There are major events on the macroeconomic calendar on Wednesday, including the release of U.S. ADP employment change data for August and preliminary second-quarter annualized GDP data. These data sets will play a key role in developing strategies before initiating new positions in the AUD/USD currency pair.
