Australian Dollar declines 0.36% despite a 3% rally in crude prices, as broader USD strength offsets commodity-linked support.
The Australian Dollar (AUD/USD) fell 0.36% to 0.7031, erasing Wednesday’s gains as the US Dollar Index (DXY) rose 0.28% near 100.00. Crude oil climbed over 3% to $77.67 on reports of potential restrictions in the Strait of Hormuz, a key chokepoint for global oil flows.
Typically, a commodity-linked currency like the AUD would benefit from rising oil prices, but concerns over global growth risks—particularly for China—limited upside. Chinese trade data showed exports growing 22.2% year-over-year in July, down from 27%, while imports slowed to 27.9% from 36%, narrowing the trade surplus to $107 billion from $125.62 billion.
Friday’s US Nonfarm Payrolls report could further pressure the AUD if the data supports a stronger USD. Technically, AUD/USD remains range-bound, with resistance at 0.7035 and support at 0.7001.