• Australian Dollar recovers its intraday losses on risk-on sentiment.
• Australia’s Retail Sales (MoM) increased by 0.3%, against the expected 0.4% and 1.1% prior.
• US Dollar corrects ahead of US GDP Annualized data due on Thursday.

The Australian Dollar (AUD) manages to recover its intraday losses and extends its gains on Thursday. Challenges persisted for the AUD/USD pair due to softer Consumer Inflation Expectations and Retail Sales figures from Australia. These factors heightened expectations of the Reserve Bank of Australia (RBA) considering interest rate cuts in the second half of 2024. Additionally, Wednesday's release of the softer Australian Monthly Consumer Price Index supported this perspective.

Australia's consumer expectations for future inflation rose by 4.3% in March, a slight decrease from the previous increase of 4.5%. February's seasonally adjusted Retail Sales showed a month-over-month increase of 0.3%, falling short of the expected 0.4% and the prior 1.1%. Additionally, on Wednesday, Australia's Monthly Consumer Price Index (YoY) for February saw a 3.4% rise, maintaining consistency with previous levels but slightly below the anticipated 3.5%.

The US Dollar Index (DXY) appears to pause its two-day winning streak, edging lower in anticipation of the upcoming release of US Personal Consumption Expenditures (PCE) data scheduled for Friday. Nevertheless, the recent uptick in US Treasury yields may have lent support to the US Dollar (USD) amid divergent opinions among members of the Federal Open Market Committee (FOMC) regarding monetary policy easing.