Australian Dollar plummets to over one-week low, closer to mid-0.7100s vs bullish USD
The AUD/USD pair attracts heavy selling for the second consecutive day on Friday and breaks through the 0.7200 mark, hitting an over one-week low during the first half of the European session.
  • AUD/USD attracts heavy follow-through selling for the second straight day amid a broadly firmer USD.
  • Fed rate hike bets and persistent geopolitical uncertainties continue to underpin the safe-haven buck.
  • Positive headlines coming out of the Trump-Xi summit and the hawkish RBA fail to support the Aussie.

The AUD/USD pair attracts heavy selling for the second consecutive day on Friday and breaks through the 0.7200 mark, hitting an over one-week low during the first half of the European session. Spot prices currently trade around the 0.7160 region, down 0.85% for the day, and remain on track to end the week on a downbeat note amid a broadly firmer US Dollar (USD).

In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, rallies to its highest level since April 7 amid growing acceptance for an interest rate hike by the Federal Reserve (Fed). According to the CME Group's FedWatch Tool, traders are now pricing in a nearly 40% chance that the US central bank will raise borrowing costs by the end of this year, and the bets were lifted by hotter-than-expected US inflation figures this week.

Adding to this, the US Retail Sales data released on Thursday backed the case for a more hawkish US Fed amid inflation fears stemming from the war-driven rise in energy prices. Meanwhile, US-Iran peace talks remain in limbo amid major disagreements over Tehran's nuclear program and the Strait of Hormuz. Moreover, US President Donald Trump said on Thursday that he will not be much more patient with Iran and urged Tehran to reach a deal.

This keeps geopolitical risks in play, which turns out to be another factor underpinning the safe-haven buck and exerts heavy downward pressure on the AUD/USD pair. Meanwhile, positive headlines coming out of a high-level summit between Trump and Chinese President Xi Jinping fuel hopes for improving relations between the world’s two biggest economies. This, however, does little to support the China-proxy Aussie or inspire bullish traders.

The fundamental backdrop and a breakdown through a one-week-old trading range back the case for an extension of the AUD/USD pair’s retracement slide from its highest level since May 2022, touched last week. However, the Reserve Bank of Australia (RBA) hawkish stance could offer some support to spot prices and help limit losses.

US Dollar Price This week

The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the British Pound.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.97% 1.53% 1.16% 0.49% 0.86% 1.48% 0.96%
EUR -0.97% 0.54% 0.24% -0.50% -0.12% 0.46% -0.02%
GBP -1.53% -0.54% -0.80% -1.04% -0.68% -0.07% -0.55%
JPY -1.16% -0.24% 0.80% -0.73% -0.31% 0.30% -0.17%
CAD -0.49% 0.50% 1.04% 0.73% 0.46% 1.03% 0.47%
AUD -0.86% 0.12% 0.68% 0.31% -0.46% 0.62% 0.12%
NZD -1.48% -0.46% 0.07% -0.30% -1.03% -0.62% -0.51%
CHF -0.96% 0.02% 0.55% 0.17% -0.47% -0.12% 0.51%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

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GIÁ TRỰC TIẾP

Tên / Ký hiệu
Biểu đồ
% Thay đổi / Giá
GBPUSD
Thay đổi 1 ngày
+0%
0
EURUSD
Thay đổi 1 ngày
+0%
0
USDJPY
Thay đổi 1 ngày
+0%
0

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