• The Australian Dollar gains ground as the stronger CPI enhances hawkish sentiment regarding the RBA monetary policy stance.
• The Australian Dollar strengthens in response to the higher 10-year yield on Australian government bonds.
• The gains in US Treasury yields could limit the losses of the US Dollar.

The Australian Dollar (AUD) edges higher for the fourth consecutive session on Thursday. The Australian Dollar (AUD) gained traction against the US Dollar (USD) following the release of robust Australian Consumer Price Index (CPI) figures on Wednesday. Additionally, the easing tensions in the Middle East have created a positive market sentiment, favoring risk-sensitive currencies like the AUD and consequently supporting the AUD/USD pair.

The Australian Dollar gains ground following the higher 10-year yield on Australian government bonds, which has surged above 4.49%, approaching five-month highs. This increase in yield is attributed to the growing expectations of a more hawkish stance from the Reserve Bank of Australia (RBA) regarding its interest rate trajectory.

The US Dollar Index (DXY), which gauges the US Dollar (USD) against six major currencies, downticks, possibly influenced by improved risk appetite. However, the modest gains in US Treasury yields could mitigate the losses of the Greenback.

The preliminary Gross Domestic Product Annualized (Q1) from the United States (US) is scheduled to be released on Thursday, with expectations of a slowdown in the growth rate. The GDP figures will provide insights into the strength of the US economy and may indicate the Federal Reserve (Fed)'s future actions. If the report reveals higher-than-expected figures, it could spark speculation that the Fed will postpone its rate cut cycle.