AUD/USD justifies its risk-barometer status as the quote seesaws around 0.6680 amid a mixed start to Thursday’s trading, following a downbeat closing. That said, the Aussie pair’s previous losses could be linked to the US Dollar’s rebound and downbeat Australia inflation numbers while the latest inaction is likely due to a lack of major catalyst, as well as mixed concerns about inflation and banking.

On Wednesday, Australia’s Monthly Consumer Price Index dropped to 6.8% YoY in February versus 7.2% expected and 7.4% prior. The reading followed downbeat Retail Sales and triggered a fall in the odds of witnessing another 0.25% rate hike from the Reserve Bank of Australia (RBA).

On the other hand, the US Dollar Index (DXY) marked the first daily gain in three even as the market sentiment improved and the US Treasury bond yields. The reason might be the month-end positioning, as well as the hawkish Fed comments, not to forget the recent fears emanating from China.

Amid these plays, Wall Street closed with notable gains led by tech and bank stocks while the US Treasury bond yields eased.

Given the light calendar in the Asia-Pacific region, the AUD/USD pair may rely on the risk catalysts for clear directions. Among them, the inflation and banking headlines will be the key to follow.