AUD/USD retreats modestly after rising above 0.7400, eyes on US data

• AUD/USD consolidates daily gains below 0.7400 ahead of American session.
• US Dollar Index stays in the negative territory near 92.00.
• Focus shifts to US Q2 GDP and weekly Initial Jobless Claims data.

The AUD/USD pair rose to a 10-day high of 0.7414 during the European trading hours on Thursday before going into a consolidation phase. As of writing, the pair was up 0.22% on the day at 0.7393.

USD remains on the back foot ahead of US data

As expected, the FOMC announced on Wednesday that it left its policy settings unchanged. During the press conference, Chairman Jerome Powell acknowledged that policymakers started debating how and when they will be adjusting asset purchases. However, Powell refrained from signalling that tapering could begin before the end of the year and caused the USD to weaken against its rivals.

The US Dollar Index closed in the negative territory for the third straight day on Wednesday and was last seen losing 0.25% at 92.03.

Earlier in the day, the data from Australia showed that the Import Price Index and the Export Price Index rose 1.9% and 13.2%, respectively, in the second quarter. Nevertheless, these figures failed to trigger a noticeable market reaction.

Later in the session, the US Department of Labor's weekly Initial Jobless Claims data and the US Bureau of Economic Analysis' first estimate of the second quarter Gross Domestic Product growth will be watched closely by market participants.

Technical levels to watch for