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Dollar bounces, Aussie rises on higher rates risk.

The dollar drew support on Wednesday from a survey showing U.S. business pulling out of a five month contraction, while the Australian dollar strengthened on the likelihood of interest rate hikes after a surprisingly strong inflation print.

The dollar index, which measures the greenback against a basket of six peers, was steady at 106.17, rebounding from a one-month low of 105.35 struck during the previous session.

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