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AUD/USD rises toward 0.6960 as USD softens and yuan strengthens
The Aussie is supported by a firmer Chinese yuan, with the People’s Bank of China setting the USD/CNY midpoint at 6.7989 below 6.8000, while attention turns to next week’s US CPI and Australia inflation expectations.
AUD/USD is rising toward the 0.6960 area as the US dollar weakens and the Chinese yuan strengthens, helping support the Australian currency given Australia’s trade ties with China, FXStreet reports.
The pair is also finding traction on the four-hour chart, with price holding above short and medium-term moving averages and RSI staying in positive territory without signaling overbought conditions, according to FXStreet’s technical read.
FXStreet notes that risk sentiment is tempered by escalating US-Iran tensions. US President Donald Trump said Iran requested further negotiations and that Washington agreed to continue talks, but he warned the ceasefire was “over,” raising concerns hostilities could intensify despite ongoing diplomacy.
Looking ahead, FXStreet says investors will focus on next week’s US Consumer Price Index report, where a stronger-than-expected inflation reading could reinforce expectations that the Fed maintains a restrictive stance and limit AUD/USD gains. A softer inflation print could weigh on the greenback and allow the pair to extend its advance, while Australia’s Consumer Inflation Expectations report may influence Reserve Bank of Australia policy expectations.