- The Australian dollar extends its winning streak for the fifth consecutive day.
- President Trump could announce his favorite candidate to lead the Federal Reserve next year.
- The US dollar depreciated due to the feeling of risk appetite after a high fragile fire between Israel and I will be mediated by the USA.
The Australian dollar (AUD) advances slightly on Friday, extending its winning streak for the fifth consecutive session. The Aud/USD pair remains strong while the US dollar (USD) fights due to renewed concerns about the independence of the US Federal Reserve (Fed).
The president of the United States, Donald Trump, could weaken the authority of the president of the FED, Jerome Powell, announcing his favorite candidate to lead the Central Bank next year. Trump said he has a list of possible Powell successors reduced to “three or four people”, without appointing the finalists.
The US dollar also faced challenges in the midst of a better risk appetite, driven by a fragile high fire between Israel and I will be mediated by the US. Operators will probably focus on developments around the conversations between the US and Iran and the conflicts in the Middle East.
The president of the USA, Donald Trump, said that the United States (USA) and will celebrate a meeting next week, but questioned the need for a diplomatic solution on Iran’s nuclear program, citing the damage that US bombings have caused to key sites, according to Bloomberg.
The Australian dollar advances while the US dollar loses ground due to the feeling of risk appetite
- The US dollar index (DXY), which measures the value of the US dollar compared to six main currencies, is quoted around 97.40 at the time of writing. The operators expect the data of the US PERSONAL CONSUMPTION PRICE INDEX (PCE) for May later on Friday.
- The president of the USA, Donald Trump, could announce a successor for the president of the Federal Reserve (Fed), Jerome Powell, for September or October. Trump could consider the former governor of the Fed, Kevin Warsh, and the director of the National Economic Council, Kevin Hassett, according to the Wall Street Journal.
- Chicago Fed president Austan Goolsbee said Thursday that political waves are not a factor in decision -making, nor would the appointment of a shadow president, according to CNBC.
- The president of the FED, Jerome Powell, said Wednesday that Trump’s tariff policies could cause a specific price increase, but they could also lead to more persistent inflation. The Fed must be cautious when considering additional rate cuts.
- Powell highlighted during his testimony before the Budget Committee of the Congress on Tuesday, strengthening his case to delay the cuts of fees, probably until some moment of the quarter quarter. Powell added: “When the right time is, wait for feat cuts to continue.” He also said that the data suggests that at least some of the tariffs will affect consumers and begin to see more tariff inflation from June.
- The president of the Fed of Minneapolis, Neel Kashkari, reaffirmed the waiting position and see of the Fed about the possible impacts of tariffs on inflation and the economy in general before making firm decisions about the movement of interest rates.
- Kansas City Fed president Jeff Schmid said early Wednesday that the Central Bank should wait to see how uncertainty about tariffs and other policies impacts the economy before adjusting interest rates. Schmid added that the resilience of the economy gives us time to observe how prices and economy develop, according to Bloomberg.
- An US intelligence report indicated that American attacks on Iranian nuclear sites have delayed Tehran program only for a few months, according to Reuters. In addition, Iranà Foreign Minister Abbas Araghchi said that the country’s nuclear program continues, according to the local news agency to Arabiya.
- China’s state planner, the National Development and Reform Commission (NDRC), said Thursday that they are “confident in minimizing the uncertainty and negative impact of external shocks.” They also pointed out that “with the implementation and introduction of policies, we are sure and we are able to minimize the adverse impacts of external shocks.”
- The Chinese prime minister, Li Qiang, made some encouraging comments on the economic perspectives in his appearance on Thursday. Li said the domestic economy shows strong resilience and development potential. China’s economic data show stability in the second quarter, he added.
- The Australian Statistics Office (ABS) reported that vacancies increased 2.9% in the three months to May, partially recovering from a 4.3% drop in the previous quarter that ended in February. Australia’s labor demand remained resistant despite a weak economy, since employment vacancies recounted in the quarter of May, driven by openings in the construction and professional sectors. However, job offers were 339,400 in May, 2.8% less than the previous year, the lowest annual fall in the last two years.
The Australian dollar is maintained around 0.6550 support near seven months maximum
The AUD/USD is quoted around 0.6550 on Friday. The daily technical analysis indicates a persistent bullish bias, since the torque is maintained within the ascending channel pattern. The 14 -day relative force (RSI) index is positioned above the 50th mark. In addition, the torque rises above the nine -day exponential mobile average (EMA), indicating that the short -term pricing impulse is stronger.
On the positive side, the AUD/USD torque is testing the maximum of seven months of 0.6552, which was recorded on June 16, followed by the upper limit of the ascending channel around 0.6570.
The nine -day EMA at 0.6511 is ready to act as the main support. A rupture below this level would weaken the impulse of short -term prices and put downward pressure on the AUD/USD torque to test the lower limit of the upward channel around 0.6450, aligned with the 50 -day EMA at 0.6447.
AUD/USD: Daily graphic
Australian dollar Price today
The lower table shows the percentage of change of the Australian dollar (AUD) compared to the main currencies today. Australian dollar was the strongest currency against the Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.06% | -0.06% | -0.06% | -0.04% | -0.16% | -0.15% | 0.04% | |
| EUR | 0.06% | -0.05% | -0.02% | 0.00% | -0.13% | -0.22% | 0.05% | |
| GBP | 0.06% | 0.05% | 0.06% | 0.03% | -0.08% | -0.12% | 0.19% | |
| JPY | 0.06% | 0.02% | -0.06% | 0.02% | -0.11% | -0.26% | 0.17% | |
| CAD | 0.04% | -0.01% | -0.03% | -0.02% | -0.09% | -0.23% | 0.12% | |
| Aud | 0.16% | 0.13% | 0.08% | 0.11% | 0.09% | -0.10% | 0.26% | |
| NZD | 0.15% | 0.22% | 0.12% | 0.26% | 0.23% | 0.10% | 0.35% | |
| CHF | -0.04% | -0.05% | -0.19% | -0.17% | -0.12% | -0.26% | -0.35% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Australian dollar of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the Aud (base)/USD (quotation).
Faqs Australian dollar
One of the most important factors for the Australian dollar (Aud) is the level of interest rates set by the Australian Reserve Bank (RBA). Since Australia is a country rich in resources, another key factor is the price of its greatest export, iron mineral. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and commercial balance. The feeling of the market, that is, if investors are committed to more risky assets (Risk-on) or seek safe shelters (Risk-Off), it is also a factor, being the positive risk-on for the AUD.
The Australian Reserve Bank (RBA) influences the Australian dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of the interest rates of the economy as a whole. The main objective of the RBA is to maintain a stable inflation rate of 2% -3% by adjusting the interest rates or the low. Relatively high interest rates compared to other large central banks support the AU, and the opposite for the relatively low. The RBA can also use relaxation and quantitative hardening to influence credit conditions, being the first refusal for the AU and the second positive for the AUD.
China is Australia’s largest commercial partner, so the health of the Chinese economy greatly influences the value of the Australian dollar (Aud). When the Chinese economy goes well, it buys more raw materials, goods and services in Australia, which increases the demand of the AU and makes its value upload. The opposite occurs when the Chinese economy does not grow as fast as expected. Therefore, positive or negative surprises in Chinese growth data usually have a direct impact on the Australian dollar.
Iron mineral is the largest export in Australia, with 118,000 million dollars a year according to data from 2021, China being its main destination. The price of iron ore, therefore, can be a driver of the Australian dollar. Usually, if the price of iron ore rises, the Aud also does, since the aggregate demand of the currency increases. The opposite occurs when the price of low iron ore. The highest prices of the iron mineral also tend to lead to a greater probability of a positive commercial balance for Australia, which is also positive for the AUD.
The commercial balance, which is the difference between what a country earns with its exports and what it pays for its imports, is another factor that can influence the value of the Australian dollar. If Australia produces highly requested exports, its currency will gain value exclusively for the excess demand created by foreign buyers who wish to acquire their exports to what you spend on buying imports. Therefore, a positive net trade balance strengthens the AUD, with the opposite effect if the commercial balance is negative.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
