Investing.com - The Australian dollar edged slightly lower against its U.S. counterpart on Thursday, as the turmoil caused by the devaluation of China's currency began to subside and as data showed that inflation expectations for Australia rose last month.
AUD/USD hit 0.7332 during late Asian trade, the session low; the pair subsequently consolidated at 0.7370, easing 0.11%.
The pair was likely to find support at 0.7279, the low of August 11 and resistance at 0.7440, the high of August 11.
Market sentiment had weakened after the People's Bank of China devalued the yuan for a second consecutive day on Wednesday.
China devalued its currency by 2% in a surprise move on Tuesday to make its exports more competitive and shore up growth in the flagging economy.
The PBOC has described the move as a “one-off depreciation”, based on a new way of managing the exchange rate that better reflected market forces.
In Australia, the Melbourne Institute reported on Thursday that its inflation expectations for the next 12 months ticked up to 3.7% in July from 3.4% the previous month.
The Aussie was steady against the euro, with EUR/AUD at 1.5117.