The Australian Dollar surged over 0.82 percent on Friday and climbed more than 1.20 percent for the week against the greenback, as the US Dollar weakened sharply following a US Treasury Department announcement regarding bond buybacks at the long end of the curve. The AUD/USD pair is now trading at 0.7170 after bouncing from the 0.7067 level earlier in the session.
The Dollar’s decline came in direct response to the Treasury’s buyback program, which targets longer-dated securities and has shifted investor sentiment across currency markets. Traders holding short Dollar positions benefited significantly from the move, while those positioned long on the Aussie captured substantial gains through the weekly rally. The technical breakout suggests bullish momentum is building, with the pair now eyeing the year-to-date high as the next resistance target.
FXnCO Insight
Traders should monitor the 0.7170 support level closely, as sustained action above this mark opens the door for further AUD strength toward year-to-date highs amid ongoing Dollar weakness.
Source: FXStreet