The AUD/USD pair attracts some dip-buyers on Thursday and sticks to its modest intraday gains, around the 0.6520 area during the first half of the European session. The uptick is sponsored by a softer tone surrounding the US Dollar (USD), though lacks bullish conviction and warrants some caution before positioning for an extension of the recent bounce from a three-month low touched last week.

Further range trading appears likely; soft underlying tone suggests a lower range of 1.2615/1.2685. In the longer run, downward momentum is beginning to slow; a break above 1.2725 would mean that the major support at 1.2565 is out of reach, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.

USD/CAD retraces its recent gains from the previous day as the commodity-linked Canadian Dollar (CAD) receives support from the improved crude Oil prices amid rising fears of supply disruption amid geopolitical tensions. The pair trades around 1.3960 during the European session on Thursday.

Unemployment claims expected at 220K, reflecting economic resilience. Home sales and Fed policies add focus to gold, GBP/USD, and EUR/USD outlook.

The Euro (EUR) is likely to trade in a range between 1.0505 and 1.0575. In the longer run, recent downtrend in EUR is likely to resume if it breaks and stays below 1.0490, UOB Group's FX analysts Quek Ser Leang and Lee Sue Ann note.

NZD/USD extends its losses for the second consecutive day, trading around 0.5860 during the European hours on Thursday. The New Zealand Dollar (NZD) faces challenges due to growing expectations that the Reserve Bank of New Zealand (RBNZ) could deliver a bumper interest rate cut next week.