AUD Struggles for Direction as US Data Looms

The Australian Dollar has been trading in a tight range against the US Dollar at around 0.7215, with investors awaiting key economic data releases from the United States.

The Producer Price Index (PPI) data for August is due out today at 12:30 GMT, and market participants are looking for signs of inflationary pressures to gauge the Federal Reserve's monetary policy outlook.

Economists surveyed by Reuters expect a faster pace of growth in the PPI, with an estimated 5.3% Year-on-Year (YoY) increase from 4.7% in July, and a core PPI reading of 4.6% YoY, up from 4.2% previously.

The Reserve Bank of Australia (RBA) is also expected to raise interest rates again this year, following warnings from Deputy Governor Andrew Hauser about upside inflation risks.