AUD/USD flat-lines around 0.7100, just below multi-month top after US data

• AUD/USD struggles to gain any meaningful traction and remains confined in a range.
• A combination of factors revives the USD demand and acts as a headwind for the pair.
• Bets for additional RBA rate hikes lend support.

The AUD/USD pair is seen oscillating in a narrow trading band on Friday and consolidating its recent strong gains to the highest level since June 2022 touched the previous day. The pair is currently placed around the 0.7100 mark, nearly unchanged for the day, as traders digest key US macro data before the week wraps up.

The Fed’s preferred inflation gauge – the Core PCE Price Index – released on Friday, came out at 0.3% MoM, slightly above 0.2% estimates and 0.2% previous MoM, and at 4.4% YoY from 4.7% previously. The slight gain in core inflation gave some marginal support to the US Dollar as it reduces the chances the Federal Reserve will turn dovish later in the year, but so far the currency has failed to follow through its initial lift to the upside.