AUD Retreats from Highs as Trade Balance Boost Fades; Focus Shifts to US CPI

The Australian Dollar retreated from its recent highs against the US Dollar on Wednesday, as the positive market impact from Australia's stronger-than-expected trade balance figures faded.

The AUD gave back some of its earlier gains, with traders turning their attention to upcoming US inflation data that could influence the Federal Reserve's policy path.

Australia's trade surplus widened to AUD 7.47 billion in December, exceeding market forecasts and initially supporting the Aussie.

However, the boost proved short-lived as market participants refocused on broader macroeconomic factors.