Forex
AUD/USD Sinks as Fed Hawkishness and US Yields Fuel Dollar Strength
The Australian Dollar (AUD) has continued its downward trend against the US Dollar (USD), trading at its lowest levels in nearly two months around 0.7030 on Friday.
This marks a three-week losing streak for the AUD/USD pair, with a weekly decline of 1.3%. The currency's weakness is attributed to the Federal Reserve's hawkish repricing and soaring US yields, which have boosted the USD across the board this week.
The meeting between US President Donald Trump and Chinese counterpart Xi Jinping failed to deliver any significant agreements, despite their praise for a 'win-win' cooperation. Hot topics like Taiwan and the conflict in the Middle East remain unresolved, highlighting the deep mistrust between major powers.