Ella 
In early Asian trading on Thursday, the AUD/USD currency pair was still under selling pressure. AUD/USD rebounded from a six-week low near 0.6520 and is currently trading around 0.6552, with an intraday increase of 0.04%.
Data released by the U.S. Department of Commerce on Wednesday showed that U.S. retail sales rose 0.6% monthly in December from 0.3% in November, better than expectations of 0.4%. Meanwhile, retail sales rose 0.8% on the month in December, beating estimates of 0.5%.
The U.S. dollar strengthened for the fourth consecutive day as expectations for a rate cut by the Federal Reserve (FED) eased. The Fed appears unconfirmed that inflation will reach 2%, with Fed Governor Christopher Waller saying on Tuesday that any rate cuts this year should be “measured and cautious.”
In terms of the Australian dollar, after the Reserve Bank of Australia raised interest rates by 25 basis points at its November meeting, the current cash rate is 4.34%. The Reserve Bank of Australia maintains a cautious stance and expects to cut interest rates only twice this year, while US financial markets have predicted six rate cuts before the end of the year. Investors await Thursday’s Australian labor force data to inject fresh impetus into the market. The unemployment rate is still expected to be 3.9% in December.
Later on Thursday, market participants will keep a close eye on Australian employment data, including December’s unemployment rate and payroll changes. In the U.S., housing starts, building permits, U.S. initial jobless claims and the Philadelphia Fed manufacturing index will be released.
