AUD Bounces Back as Better-than-Expected PMIs Fuel Rate Hike Bets
The Australian Dollar (AUD) rebounded against the US Dollar (USD) on Friday as better-than-expected domestic flash Purchasing Managers Indexes (PMIs) lifted bets for more interest rate hikes by the Reserve Bank of Australia (RBA).
Despite a mixed fundamental backdrop, the AUD/USD pair attracted buyers during the Asian session and reversed some of its previous day's slide to the weekly trough. The US Dollar, however, preserved its strong weekly gains to reach its highest level since June 26.
The strong US Dollar, bolstered by inflationary concerns and Fed rate hike bets, acted as a headwind for the AUD/USD pair. Additionally, President Donald Trump's new trade tariffs tempered investors' appetite for riskier assets, further underpinning the safe-haven Greenback.