AUD/USD is trying to gain significant traction and remains in a range. A combination of various factors will revive USD demand and act as a headwind for the pair. Bets on further RBA rate hikes provide support ahead of the main US PCE price index. AUD/USD is seen swinging in a narrow trading range on Friday, consolidating its recent strong gains to the highest level since June 2022, touched the previous day. The pair is currently hovering around 0.7100, almost unchanged on the day, as traders await US macro data for further momentum. The Fed’s main measure of inflation – the Core PCE Price Index – will be released soon. This could affect the path of interest rates from the US Federal Reserve, which in turn will lead to demand for the US dollar and give the pair AUD / USD a new direction. At the same time, the money is supported by a good rise in US Treasury yields. In addition, prevailing cautious market sentiment will further benefit the relative safe haven of the Greenback and limit gains in risk-sensitive Australia. However, the subdued intraday USD lacks bullish conviction due to less aggressive Fed policy tightening. In fact, the market is still pricing in a 25 basis point Fed rate hike in February, which in turn should mask a significant improvement for the dollar. Additionally, the likelihood of an additional rate hike by the Reserve Bank of Australia (RBA) in February, confirmed in Wednesday’s internal CPI report, supports the local currency and acts as a tailwind for the AUD/USD pair. . Friday’s US economic data for , also includes the pending release of home sales data and a revised Michigan consumer index. This, along with US bond yields and broader market risk sentiment, could affect USD price dynamics and give a boost to the AUD/USD pair. However, the focus will be on the outcome of the two-day monetary policy meeting of the FOMC, which is scheduled to be announced next Wednesday. With major event risk ending, a major exchange is more likely to extend its consolidation price move.