FX.co ★ Aussie Dollar Gains for 3rd Session

The Australian dollar rose above $0.654 on Thursday, marking its third consecutive day of gains. This uptick is attributed to a surge in copper prices, triggered by newly announced tariffs from the Trump administration. A hefty 50% levy on all US copper imports is scheduled to take effect on August 1, pushing copper prices significantly higher. As Australia ranks among the leading copper exporters globally, the country stands to benefit. The increase in commodity prices is supporting the Australian dollar due to its strong ties to the commodity market. Additional support for the currency came from gains in iron ore and gold, further boosting resource-sensitive currencies. On the monetary policy front, the Reserve Bank of Australia’s unexpected decision to maintain interest rates earlier this week continued to provide support. Governor Michele Bullock highlighted ongoing inflationary risks due to elevated unit labor costs and weak productivity, cautioning that price pressures might surpass current forecasts. Deputy Governor Andrew Hauser also commented on escalating global uncertainties, noting that the new tariffs are anticipated to heavily impact economic growth.