Australian Dollar Surges Amid US Dollar Weakness

Highlights:

• Australian dollar surges to US63.40¢, gaining 2.1% this week—the best performance since 2023.
• US dollar index hits a four-month low, driving AUD strength amid a broad greenback retreat.
• AUD weakens against the euro, falling to 58.45¢—its lowest level since August last year.

Strongest Weekly Gain Since 2023

The Australian dollar (AUD) has shown significant strength, reaching US63.40¢ at the time of writing, after a 1% overnight jump. This surge has resulted in a 2.1% weekly gain, marking its best performance since 2023 if sustained.

US Dollar Retreat Boosts AUD

The rally is primarily driven by a broad decline in the US dollar index, which hit a four-month low against a basket of major currencies. The greenback's weakness was further compounded by Europe's increased defense spending plans, which pushed the euro higher.

AUD Declines Against the Euro

Despite its strong performance against the US dollar, the Australian dollar weakened against the euro, dropping to 58.45¢—its lowest level since August last year. By 3 PM AEDT, the AUD was trading at 58.73¢ per euro.

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