Aussie Dollar Slips Below 0.72 as US Inflation Expectations Rise

The Australian dollar declined against the US dollar on Thursday, falling below the 0.7200 threshold after reaching its highest level since mid-May earlier in the day.

AUD/USD was trading around 0.7160, retreating from a recent peak near 0.7220 as the greenback strengthened.

The currency's weakness is attributed to rising US inflation expectations and oil-price pressures linked to the Middle East conflict, which have kept inflation sticky and underpinned the dollar.

Traders are increasingly positioning for a Federal Reserve move in September after the PPI rose 5.4% year on year to August.