AUD/USD turns sideways around 0.6300 as focus shifts to US Inflation

The AUD/USD pair is oscillating around the immediate hurdle of 0.6300 in the Toyo session after a rebound move from a fresh two-year low at 0.6274. A rebound in the asset seems a dead cat bounce as the risk sentiment is extremely negative amid a weaker S&P500. The asset has displayed a five-day losing spell and is expected to remain on the tenterhooks ahead of the US Consumer Price Index (CPI) data.

Meanwhile, the US dollar index (DXY) has established firmly above 113.00 as investors are hiding behind the safe haven amid a risk-off market mood. The recent escalation in Russia-Ukraine tensions after Moscow claimed that Ukrainian military attacks have demolished a bridge linking the occupied Crimean Peninsula to Russia. The Crimean Bridge serves as a major supply line for Russian military forces available in southern Ukraine.

The event has escalated the fears of nuclear operations by Russia, which could damage the harmony in Europe to a broader extent.

Going forward, the extent of the deviation in the US CPI data will display the true picture of the rate hike announcement by the Federal Reserve (Fed) in November. As per the consensus, the headline US inflation will land at 8.1%, lower than the prior release of 8.3%.

Thanks to the falling gasoline prices in the US, which might keep the plain-vanilla inflation in check. While the release of the core CPI catalysts is gathering more importance. The event has not displayed signs of exhaustion yet. Also, it is expected to improve to 6.5% from the prior release of 6.3%.

On the Aussie front, investors are focusing on China's Consumer Price Index (CPI) data, which is later this week. An improvement in China's inflation could bring volatility for the antipodean as the event will trim the odds of a rtae cut by the People's Bank of China (PBOC).