Ella 
The Australian dollar closed higher for the third day in a row on Thursday. The Reserve Bank of Australia maintained a hawkish stance at its June meeting on Tuesday, which continued to support the AUD/USD pair. In addition, weaker-than-expected retail sales heightened market speculation that the US Federal Reserve (Fed) would cut interest rates later this year, which weighed on the US dollar and boosted the AUD/USD pair.
However, the RBA issued a statement saying that the economic outlook remains uncertain and the process of keeping inflation within the target range will not be smooth sailing. Traders will get more clues from the preliminary value of the Australian Judo Bank Purchasing Managers’ Index (PMI) for May, which will be released on Friday. Any signs of weakness in the Australian economy may prompt the RBA to reduce borrowing costs, which will weigh on the Australian dollar.
In the United States, investors will focus on the US initial jobless claims, building permits, housing starts, the Philadelphia Fed manufacturing index and a speech by Federal Reserve official Kashkari on Thursday. On Friday, the preliminary value of the US S&P Global Purchasing Managers’ Index for June will be in the spotlight.
