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Australian dollar climbs to seven-week high above 0.7050
The rally comes after July inflation came in softer than expected, with most banks now converging on a hold on 11 August.
The Australian dollar rose to just above 0.7050, its highest level in seven weeks, and stayed above the 50-day exponential moving average near 0.7000 for the first time since mid-June, according to FXStreet.
FXStreet said the technical picture is shifting from a downtrend to a base, with the 200-day EMA near 0.6900 continuing to rise. The move was also described as narrow, with a roughly 25 pip daily range, and momentum indicators rolling over, as the daily Stoch RSI fell from the high 80s to the mid-70s.
The outlet attributed the strength less to Australian-specific rate expectations and more to broader currency dynamics, noting the advance unfolded during a period when Australia’s own interest rate case was being weakened. It cited a July inflation print of 3.8% headline and 3.6% in the trimmed mean, both softer than expected, and said banks have since converged on holding the cash rate at the board announcement at 04:30 GMT on 11 August.
FXStreet added that revised July activity data also helped, pointing to an improvement in the composite PMI to 53.2, services at a six-month high, and manufacturing returning to expansion, alongside household spending that beat. The piece framed the currency’s behavior as trading more like a high-beta expression of a weakening greenback than a direct bet on Australian yields, even as Australia’s cash rate remains above the US upper bound, 4.35% versus 3.75%.