The Australian Dollar gains as the Chinese Yuan hits a one-week high, offsetting geopolitical tensions and softer USD demand.
AUD/USD climbed toward 0.6960 on Friday, driven by a weaker US Dollar and a stronger Chinese Yuan. The pair recovered on the four-hour chart, though escalating US-Iran tensions capped broader risk appetite.
The Chinese Yuan reached a one-week high against the USD, supported by a firmer fixing from the People’s Bank of China, which set the USD/CNY midpoint at 6.7989. Australia’s trade ties with China amplified the Yuan’s impact on the Aussie. Technical indicators suggest improving momentum, with the pair trading above key moving averages.
Investors now await next week’s US Consumer Price Index data, which could influence Federal Reserve policy expectations and USD direction.