Aussie Holds Strong as US Dollar Weakness Continues

The Australian dollar has remained above $0.71, maintaining its position near a twelve-week high as the US dollar continues to weaken.

This trend is driven by concerns over US fiscal policy and the effectiveness of Treasury debt buybacks, which have put pressure on the greenback.

Last week, the Aussie saw its longest weekly winning streak since 2020, rising by 1.2% as investors await Australia's July inflation data for clues on the RBA's next move.

The central bank has kept its cash rate at 4.35%, with Deputy Governor Hauser hinting that further hikes are possible if inflation risks materialize from the Middle East conflict, AI investment, and weak productivity.