Ella 
AUD/USD posted its fifth consecutive day of gains on Friday. AUD/USD gained momentum as the Reserve Bank of Australia (RBA) gained increasing support for its hawkish stance. That sentiment was reinforced by a reassessment from TD Securities, which pushed back the Reserve Bank of Australia’s rate cut expectations from November to February 2025.
The Australian dollar strengthened further as Australian government bond yields rose, with the 10-year bond yield hitting a 21-week high of 4.59%. The surge was attributed to Australian consumer price index (CPI) data released on Wednesday that beat expectations and sparked speculation about the Hawkish sentiment from the RBA.
A rebound in the U.S. Dollar Index (DXY), which measures the performance of the U.S. dollar (USD) against six major currencies, may have been affected by a shift in risk aversion. However, gains on the U.S. Dollar Index may be limited as U.S. Treasury yields correct lower, leading to a weaker U.S. dollar.
The dollar remained subdued despite mixed preliminary U.S. data on Thursday, including a higher-than-expected first-quarter core personal consumption expenditures (PCE) price index and lower-than-expected annual GDP growth in the first quarter.
Market attention now turns to U.S. personal consumption expenditures (PCE) price index data for March, due to be released on Friday. The data is expected to be the focus of market attention as investors assess its impact on inflationary pressures and its potential impact on U.S. monetary policy.
