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fxJul 31, 2026, 6:55 AM

AUD/USD Rallies Above 0.7000 as Soft US GDP Fuels RBA Hike Bets

The Australian dollar extended gains against the greenback, trading near 0.7035 as weaker-than-expected US GDP data weighed on the dollar. Expectations for another RBA rate hike this year provided additional support.

AUDUSD

The AUD/USD pair climbed to its strongest level since mid-June during early European trading on Friday, rising toward 0.7035.

The move was driven by disappointing US GDP figures, which softened the US dollar across the board. At the same time, market participants are pricing in a growing chance the Reserve Bank of Australia will deliver another rate increase before year-end, further widening the policy divergence in favor of the Aussie.

The combination of resilient domestic rate expectations and a weaker dollar backdrop has lifted the pair above the 0.7000 handle, a level not seen since June 17.

Source: FXStreet Forex News