FX.co ★ Australian Dollar Rallies to 8-Month High

The Australian dollar appreciated to approximately $0.661 on Thursday, marking its highest point since November of the previous year and continuing a five-session upward trend. This surge is largely attributed to optimistic news concerning recent global trade progressions. It has been reported by European Commission officials that the United States and European Union are nearing a trade agreement, which would entail 15% tariffs on most imports while exempting certain items from duties. Additionally, Treasury Secretary Scott Bessent has confirmed forthcoming discussions between US and Chinese officials, scheduled to take place in Stockholm the following week. These negotiations are part of a series of recent developments, including a US–Japan tariff agreement, which have contributed to easing international trade tensions. The United States has also successfully concluded separate agreements with both the Philippines and Indonesia. Meanwhile, in Australia, business activity recorded its most rapid expansion since April 2022 in the month of July. This growth was driven by a notable increase in manufacturing output after three months of stagnation, alongside a significant upturn in the services sector, supported by robust new orders and continued hiring, despite persistent weakness in export demand and a decline in business confidence.