AUD Retreats from Intraday Highs Ahead of CPI Data and Fed Decision

The Australian Dollar retreated from its intraday gains on Tuesday as traders consolidated positions ahead of two major macroeconomic events later this week.

The release of Australia's monthly Consumer Price Index (CPI) data and the Federal Reserve's interest rate decision will have a significant impact on the AUD/USD exchange rate.

The AUD/USD pair initially strengthened during the Asian trading session, supported by a modest uptick in risk appetite and a slight pullback in the U.S. Dollar.

However, selling pressure emerged near key resistance levels, leading to profit-taking and position-squaring ahead of the critical data releases.