The AUD/USD pair gained traction, advancing near the 0.6550 level, fueled by a declining US Dollar. A softer tone in U.S. Treasury yields and cautious market sentiment about Federal Reserve policy have weakened the greenback, supporting the Australian Dollar. Market participants are factoring in expectations of a pause in rate hikes, further pressuring the Dollar’s strength.
The Australian Dollar has also benefited from risk-on flows as traders shift focus to upcoming economic data. Investors remain attentive to developments in the U.S. labor market, which could influence short-term currency movements. The pair’s upward movement highlights growing uncertainty around the Fed’s ability to sustain tight monetary conditions.
