Australian Dollar edges higher amid modest USD weakness; upside potential seem limited
The AUD/USD pair edges higher during the Asian session on Friday, looking to build on the overnight bounce from the lower boundary of the weekly range amid a softer US Dollar (USD). Spot prices, however, lack bullish conviction and currently trade above mid-0.6900s, up just over 0.10% for the day.
The Australian Dollar (AUD) experienced a slight upward movement during the Asian session on Friday, as it looked to capitalize on the previous day's bounce from the lower end of the weekly range, aided by a weaker US Dollar (USD). The AUD/USD pair, however, still trades above the mid-0.6900s region, marking an increase of just over 0.10% for the day.
President Donald Trump declared on Thursday that the US would refrain from launching military strikes against Iran before the November 3 midterm elections, which helped to stabilize crude oil prices and alleviated worries about heightened inflation. Furthermore, a 30-year bond auction received strong demand, leading to a slight decline in US Treasury yields, thus supporting the AUD/USD pair as the USD traded below an 18-month peak and benefited the AUD.
Despite this, the AUD/USD pair showed limited bullish enthusiasm, currently trading around mid-0.6900s. Geopolitical tensions from the ongoing US-Iran conflict and the potential for a conflict between Iran-backed Houthis and Saudi Arabia may add support for the safe-haven USD. The US Federal Reserve's (Fed) cautious approach may also prevent further declines in the USD and cap the AUD/USD pair's recovery from its low of 0.6900, last seen early in July.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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