Chart - Courtesy Trading View
AUD/USD was trading unchanged at 0.6275 at around 16:40 GMT, outlook bearish.
The pair has bounced off from multi-month lows at 0.6169 hit earlier on the day.
A Dragonfly Doji formation on the daily candle raises scope for further upside in the pair.
The US dollar rose sharply immediately after upbeat September US CPI report that showed higher-than-expected readings.
Data released earlier on Thursday showed US Consumer Price Index rose 0.2% in September above the 0.1% of market consensus. The annual core rate hit a new decade high at 6.6%.
The dollar jumped as US yields soared to fresh multi-year highs. However, the greenback lost momentum with a rebound in equity prices.
Major technical bias for the pair is still bearish. Upside remains capped at 5-DMA. Decisive break above could see test of 21-EMA.
