The post AUD/USD sticks to gains above 0.6300, over one-month top on weaker USD appeared on BitcoinEthereumNews.com.

AUD/USD attracts some buyers after Trump said that he could reach a trade deal with China. Bets for more Fed rate cuts weigh on the USD amid a positive risk tone and also lend support. Spot prices remain on track to snap a three-week losing streak as traders look to US PMIs. The AUD/USD pair breakout of a two-day-old consolidative trading range and climbs to over a one-month top, around the 0.6330 area on the last day of the week. Spot prices stick to intraday positive bias through the first half of the European session, with bulls now awaiting a move beyond the 50-day Simple Moving Average (SMA) before positioning for further gains amid broad-based US Dollar (USD) weakness. The USD Index (DXY), which tracks the Greenback against a basket of currencies, drops to a one-month low amid bets that the Federal Reserve (Fed) will lower borrowing costs further by the end of this year. The expectations were lifted by US President Donald Trump’s comments on Thursday, saying that he will demand that interest rates drop immediately. This, along with a generally positive risk tone, undermines the safe-haven buck and provides a goodish lift to the AUD/USD pair. The global risk sentiment gets an additional boost on Friday after Trump said that he would rather not use tariffs on China and that he could reach a trade deal with the world’s second-largest economy. Moreover, Trump’s remarks ease inflation concerns and trigger a fresh leg down in the US Treasury bond yields, which turns out to be another factor weighing on the USD. Apart from this, technical buying above the 0.6300 mark contributes to the AUD/USD pair’s intraday positive move.  With the latest leg up, spot prices have now rallied around 200 pips from the lowest level since April 2020 touched…

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Filed under: News - @ January 24, 2025 9:20 am