The Australian dollar gains 0.16% against the USD as softer US data and Fed policy expectations pressure the greenback.
AUD/USD rose to 0.6940, up 0.16% on Thursday, as the US Dollar Index (DXY) fell 0.11% to 100.95. The decline in the greenback offset geopolitical tensions in the Middle East, which investors viewed as posturing ahead of potential peace talks.
US economic data showed mixed signals, with initial jobless claims dropping to 215K from 217K, while continuing claims edged up to 1.814M. Federal Reserve minutes revealed policymakers remain divided on inflation risks and future monetary policy, reinforcing expectations of rate cuts and weighing on the USD.
In Australia, Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter reiterated the central bank’s readiness to act if needed to control inflation and sustain employment, capping potential AUD volatility.