Aussie Streaks to New Heights as US Debt Concerns Bite

The Australian dollar is poised to extend its winning streak to eight consecutive weeks, marking its longest weekly run since 2020. The Aussie rose 0.3% on Friday to a new 11-week high of $0.7134, adding to its 0.7% weekly gain.

This surge comes despite the US Treasury's surprise buyback plan in the bond market failing to calm the markets and putting pressure on the dollar.

Luci Ellis, chief economist at Westpac, expects more manoeuvres like these as Washington seeks to bring down debt-servicing costs. However, she notes that these are merely stop-gaps, and diversification out of USD assets is becoming both feasible and attractive.