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Better-than-expected Chinese growth data on Wednesday pushed the Australian dollar a little higher, driving putting a dampener on the US dollar.
The dollar was range-bound on Tuesday as the conflict in the Middle East did not spill over and investors awaited a slew of speeches by Fed officials.
The US dollar edged lower on Monday but remained near a one-week high with fragile sentiment against a backdrop of conflict in the Middle East.
The dollar held firm on Friday as stronger-than-expected US inflation revived prospects that the Fed will have to keep interest rates higher for longer.
On Thursday, the US dollar flirts with a 2-week low before key inflation data, primarily due to falling Treasury yields.
The US dollar traded sideway largely near its two-week low on Wednesday as investors await the FOMC meeting minutes for more clues on interest rate path.
The dollar remained stable, below recent highs, with currency markets quiet as traders awaited further remarks from Fed officials later in the day.
Safe-haven demand lifted the USD and JPY on Mon due to Israel-Gaza war escalation. Fragile risk sentiment amid increasing global violence.
Powell's recent signal of potential Fed rate hikes has fueled ongoing headwinds for stocks as positive economic data persists.
The euro was set for a twelfth week of declines against the dollar ahead of key US job report. That will mark the longest losing streak on record.
The yen found relief on Thursday after hitting its lowest since Oct 2022 earlier this week, rallying above 150.
US stocks and government bonds finished their worst month of the year due to lingering expectations of a prolonged period of high rates.
The dollar perched close to a 10-month high against on Thursday, keeping the yen near the psychological level of 150.
The dollar scaled a 10-month high on Wednesday, pushing the euro and sterling to 6-month lows, while Treasury yields remained near 16-year peaks.
On Tuesday, the dollar hit a 10-month high as US bond yields surged to levels not seen since October 2007, and the Japanese yen continued its decline.