Ella 
The Australian dollar (AUD) retraced recent losses after the country released retail sales data on Thursday. However, recent U.S. gross domestic product (GDP) data caused financial markets to postpone expectations for the first rate cut by the Federal Reserve (Fed). This provided some support to the US dollar (USD), weakening AUD/USD.
The Australian dollar was challenged by losses in the S&P/ASX 200 index, with gains in the property sector offset by losses in the technology sector on the final day of company reports. Wednesday’s inflation data and weak commodity prices further added to the selling pressure. Elsewhere, Australian markets are taking cues from Wall Street’s weakness overnight, with investors remaining cautious ahead of key U.S. personal consumption expenditures-price index data that could influence the Federal Reserve’s monetary policy stance.
The U.S. Dollar Index (DXY) struggled to sustain gains, driven by higher U.S. Treasury yields. Additionally, a U.S. Federal Reserve spokesman maintained a cautious stance, hinting at the possibility of a rate cut later this year. This makes a rate cut less likely at the upcoming meeting, providing upside support for the dollar.
