Australian Dollar hovers just above 0.7000 with no news from the Trump-Xi summit

The Australian Dollar (AUD) maintained a price of just above 0.7000 on Friday, after testing the psychological level of 0.7000 earlier in the day. This level, approximately 0.7030, marks the lowest point in nearly two months for the AUD/USD pair. The Federal Reserve's hawkish stance and soaring US yields have contributed to the strength of the US Dollar (USD) throughout the week.

Despite a meeting between US President Donald Trump and Chinese President Xi Jinping, no significant agreements were reached, with both leaders expressing their desire for "win-win" cooperation. The leaders of major economies praised each other, dined together on Thursday, and are set to share a cup of tea on Friday, but so far, they have not achieved any breakthroughs.

Major issues such as Taiwan and the Middle East conflict continue to be unresolved, highlighting the deep mistrust between the world's leading powers. In the US, positive business activity data, rising wages, and higher energy prices have fueled expectations of further interest rate hikes from the Federal Reserve (Fed) in the coming months to prevent economic overheating. This outlook has been supported by several Fed policymakers.