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Australian dollar fades after brief push above 0.7050

AUD/USD climbed to just under 0.7050, then retreated back near 0.7000 as rate differentials stayed little changed for the pair.

Reported · Written up by our desk · Major Pairs

The Australian dollar rose early on Tuesday, moving from just below 0.7000 to a session high just under 0.7050, before giving back the advance and trading back near 0.7000 late in the session, flat for the day. FXStreet noted the rally stalled around the declining 50-day exponential moving average, which sits just above 0.7000, keeping AUD/USD range-bound despite a backdrop that is typically directional. The article points to conflict and tariff concerns, alongside firmer crude oil, factors that can feed Australian inflation expectations and support the Reserve Bank of Australia’s tightening bias. The cash rate is already 4.35% after three hikes this year, and the June decision left further increases on the table, with most surveyed economists expecting another move at the 11 August meeting. On the other side of the pair, safe-haven demand and energy-related inflation risks were described as keeping markets pricing Federal Reserve hikes into year-end and mid-September. FXStreet also cited a weaker link for the dollar, a single U.S. data point from a weekly hiring gauge that slowed for a fourth straight week but “moved precisely nothing.” With both central banks leaning hawkish for similar reasons, the rate differential was described as failing to push AUD/USD higher, while other commodity signals also appeared muted.

Latest closeWTI crude $79.00 ▼0.8%

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