Investing.com - The Australian dollar retraced gains on Wednesday after a private sentiment survey showed a solid increasen. but consumer prices in top trading partner China rose at a slower pace than expected.
AUD/USD traded at 0.9401, up 0.01%, while USD/JPY traded at 101.5, flat.
In Australia, the July Westpac-MI consumer sentiment rose 1.9% to 94.9 from 93.2 in June.
Consumer prices in China rose 2.3% in JUne, just below the 2.4% gain expected, while producer prices eased 1.1%, more than the 1.0% drop expected and the 28th straight month of deflation.
Overnight, the dollar traded largely lower against most major currencies as investors avoided the greenback ahead of the release of the Federal Reserve's June policy meeting minutes on Wednesday.
Many were hoping the document would contain language indicating when interest rates may begin rising in the U.S. and avoided the greenback ahead of time.
While the labor market has shown some signs of improvement, markets remain unclear as to how much time will pass from when the Fed will wrap up stimulus programs and when it will begin hiking benchmark interest rates.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 80.23.