Ella 
AUD/USD attracted some selling in early Asian trading on Thursday. AUD/USD fell below the 0.6300 mark and is currently trading near 0.6290, with an intraday decline of 0.28%. Risk aversion and a stronger US dollar weighed on AUD/USD.
Earlier on Thursday, Reserve Bank of Australia Governor Bullock said inflation was slightly above expectations but about what we expected. Bullock added that the central bank’s goal is to slow economic growth without tipping the economy into recession.
Australia’s consumer price index (CPI) reached 1.2% in the third quarter of 2023, compared with 0.8% in the second quarter. Market expectations were for 1.1%. Inflation rose to an annualized rate of 5.4% in the third quarter of 2023, compared with expectations of 5.3% and the previous reading of 6.0%.
In terms of U.S. dollars, the seasonally adjusted annualized total of new home sales in the United States increased to 759,000 units in September, higher than the expected 680,000 units. Higher U.S. Treasury yields and markets maintaining risk aversion supported the dollar’s gains. Meanwhile, U.S. Treasury yields moved higher, with the 10-year Treasury yield surging to 4.96%.
In addition, geopolitical risks will continue to drive safe-haven flows. Earlier on Thursday, Israeli Prime Minister Benjamin Netanyahu said Israel was preparing to launch a ground invasion of Gaza and that the time for the invasion would be agreed upon by all parties.
Next, on Thursday, the Asian market will release Australia’s third quarter (Q3) import and export price index. Market participants will be closely watching the preliminary reading of third-quarter gross domestic product, released for the first time on Thursday, which is expected to grow 4.2%. In addition, the number of initial jobless claims in the United States last week and durable goods orders will also be announced.
