The Australian Dollar rose to its highest level since early June as US bond buybacks weighed on the greenback.
The Australian Dollar surged above 0.7150 against the US Dollar on Friday, reaching its strongest level since early June. The move followed a broader decline in the US Dollar amid expectations of bond buybacks, which reduced demand for the currency.
The pair approached a three-month high near 0.7200, extending gains from earlier in the week. Prior to this rally, the AUD/USD had traded in a tight range below 0.7100 for most of July, with limited upward momentum.
Market participants are monitoring the US Dollar’s weakness as a key driver for further AUD strength, though no immediate reaction in equities or commodities was reported.