AUD/USD Pauses near May High as Traders Wait for US Inflation Data

The AUD/USD pair remains close to its highest level since May 14, above the 0.7200 mark through the Asian session on Thursday. Traders seem hesitant and are waiting for key US inflation data that will provide cues about the Federal Reserve's policy path.

US Dollar bulls remain defensive amid a hawkish Bank of Japan-inspired rally in the Japanese Yen, which is acting as a tailwind for the AUD/USD pair. Rising bets for another interest rate hike by the Reserve Bank of Australia later this month are also supporting the Australian Dollar and backing further near-term gains.

A break above the channel resistance at 0.7260 could pave the way for an extension of the uptrend, while a drop below the 100-period SMA around 0.7172 would undermine the current bullish structure and signal a deeper corrective phase within the broader advance.