Aussie Dollar Steady Near 0.7061 as US Inflation Data Weighs on Greenback

The Australian Dollar (AUD) held steady near 0.7061 on Thursday after US inflation data weighed on the Greenback, which recovered some ground to finish almost flat.

Data from the US showed that PPI was below estimates and improved compared with June's print. Core PPI also ticked lower, aligned with forecasts. Initial Jobless Claims for the week ending August 8 edged up from 200K to 209K, above forecasts but close to the 4-week average.

This prompted a repricing of future interest rates set by the Federal Reserve. Traders now expect a rate increase towards the end of 2026, while probabilities dipped to 30% for a hike and 70% for a hold in September.