The AUD/USD pair rises to near 0.6300 as the US Dollar (USD) slides due to an uncertain United States (US) economic outlook. The pair benefits from a softer Greenback as investors focus on upcoming inflation data, which could influence Federal Reserve (Fed) policy expectations. However, persistent concerns over trade tensions and global growth continue to cap upside potential for AUD/USD.
Australian Dollar strengthens as US Dollar declines
The US Dollar Index (DXY) fell to new multi-month lows near 103.20, pressured by declining bond yields and speculation about a potential US economic slowdown. Market participants are focused on upcoming data releases, including inflation figures, MBA Mortgage Applications, and the EIA's crude oil inventory report.
Market caution surrounding trade policies and economic recession risks in the US kept gains in check. AUD/USD fluctuated around the 0.6280-0.6270 zone, while the US Dollar Index hovered near 103.30, marking its weakest level since early October.
Commodity markets provided limited support for the Aussie. Copper and iron ore prices attempted to recover after recent declines, though concerns over slowing global demand kept gains subdued.
Trade negotiations between the US and Canada remain in focus. Ontario Prime Minister Doug Ford agreed to suspend planned electricity export tariffs following emergency discussions with US officials. The move comes after US President Donald Trump threatened a 50% tariff on Canadian steel and aluminum, further escalating trade tensions.
Investors are closely watching US inflation data, which is expected to be a key factor in shaping Federal Reserve policy expectations. A higher-than-expected CPI reading could reinforce the case for a prolonged period of restrictive monetary policy.
Source: Fxstreet
The Australian dollar (AUD) held strong at the start of the week after strong Australian inflation data, while the US dollar weakened as market sentiment grew cautious due to the US-Greenland dispute....
The Australian Dollar is the best performer among major currencies in an otherwise calm start tobe the year. The Aussie appreciates nearly 0.5% against the US Dollar in the daily chart, so far, buoyed...
The Australian Dollar (AUD) continued to strengthen against the US Dollar (USD) on Wednesday, posting gains for the third consecutive day. The AUD's strength was driven by the release of the Reserve B...
The AUD/USD currency pair is currently in a bullish consolidation phase, a brief pause in its uptrend, and is hovering around the 0.6600 level during the Asian session on Friday (December 5th). This l...
The Australian Dollar (AUD) rose and reached a three-week high against the US Dollar (USD) during Wednesday's Asian session. This rise occurred despite less-than-satisfactory Australian economic data....
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer...
Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease geopolitical tensions and improve market...
The Nikkei 225 Index climbed 1.73% to close at 53,689, while the broader Topix Index rose 0.74% to 3,616 on Thursday, snapping a five-day losing streak as Japanese shares were lifted by a strong rally in chip and artificial intelligence related...