Anna 
The Australian Dollar (AUD) halted its recent upward momentum as mixed employment data was released on Thursday. Australia’s 10-year government bond yield also retreated to around 4.2% following the Wage Price Index (QoQ) report for the first quarter, which showed a 0.8% increase, slightly below the expected rise of 0.9%. These figures have reinforced a cautious outlook on monetary policy by the Reserve Bank of Australia (RBA), weighing on the AUD/USD pair.
Earlier in the day, the Australian Dollar saw support from improved risk appetite driven by weaker-than-expected monthly Consumer Price Index and Retail Sales data from the United States (US) released on Wednesday. This has fueled expectations of multiple rate cuts by the Federal Reserve (Fed) in 2024, dampening demand for the US Dollar (USD) and boosting the AUD/USD pair to a four-month high of 0.6714 on Thursday.
Meanwhile, the US Dollar Index (DXY), which measures the USD against six major currencies, rebounded from its daily losses due to improved US Treasury yields, lending support to the Greenback. The 2-year and 10-year yields on US Treasury bonds currently stand at 4.73% and 4.33%, respectively, at the time of reporting.
