AUD/USD SOARS TO NEAR 0.6050 AMID SIGNIFICANT WEAKNESS IN US DOLLAR
AUD/USD SOARS TO NEAR 0.6050 AMID SIGNIFICANT WEAKNESS IN US DOLLAR
The Australian Dollar (AUD) has surged against the US Dollar (USD), with the AUD/USD pair approaching the 0.6300 mark during North American trading hours on Wednesday.
The USD has come under pressure due to concerns over a potential slowdown in the US economy, leading to a decline in the US Dollar Index (DXY) to new multi-month lows near 103.20.
Stronger-than-expected GDP growth and robust trade data from Australia have bolstered the AUD.
In the fourth quarter of 2024, Australia's GDP grew by 0.6% quarter-over-quarter, surpassing market expectations.
Ongoing trade tensions, particularly between the US and China, have contributed to market volatility.
China's recent trade actions, such as imposing tariffs on Canadian goods, have added to global economic uncertainties.
Commodity prices, especially iron ore, play a significant role in Australia's economy.
Fluctuations in these prices can influence the AUD, as higher iron ore prices tend to strengthen the currency.
