Ella 
AUD/USD remained consolidating on Tuesday, leaning towards extending losses. The AUD/USD pair faces challenges as investors take a cautious approach ahead of a key U.S. inflation report that could impact the Federal Reserve’s monetary policy outlook.
Australia’s S&P/ASX 200 index rose on Tuesday, supported by gains in financial and gold stocks, which could provide support for the Australian dollar (AUD). Separately, RBA Assistant Governor (Economic) Sarah Hunter spoke on a panel at the AFR Business Summit on Tuesday to discuss fourth quarter GDP. (GDP) meets expectations. Hunt said that recent inflation data are also in line with expectations and that inflation remains the main factor hindering household consumption.
The U.S. dollar index held steady, consolidating gains as the market remained cautious ahead of U.S. consumer price index (CPI) data. Expectations show inflation rising on a monthly basis in February, but the annual rate is expected to be steady. If the inflation data is stronger than expected, it may reduce hopes of a near-term interest rate cut by the Federal Reserve. This could boost the US dollar, giving AUD/USD a potentially bearish element.
