• AUD/USD trades under pressure.
  • US Dollar Index trends higher after Tuesday’s weakness
  • US December CPI data in focus.

After a positive close on Tuesday, AUD/USD lost traction and fell to a fresh daily low of 0.7735 ahead of the US open.

DXY rebounds ahead of inflation report

USD strength is pushing AUD/USD lower. The US Dollar Index (DXY) declined0.4% on Tuesday after a bond auction in the sent yields tumbling. Amid a cautious market mood the greenback started to recover its losses and the DXY was last seen gaining 0.2% at 90.27.

The Consumer Price Index (CPI) figures for December will be released. Core CPI is expected to remain unchanged at 1.6% on a yearly basis.