FX Trading for Income and Wealth

AUD/USD consolidates above 0.7100 during the Asian session on Thursday and remains close to a three-year peak amid bets for another RBA rate hike in 2026, bolstered by the latest Australian consumer inflation figures released the previous day. Moreover, a softer US Dollar and a positive risk tone act as a tailwind for the Aussie, though trade uncertainties seem to act as a headwind for spot prices.

USD/JPY extends the previous day's late pullback from a two-week high and drifts lower during the Asian session on Thursday, as intervention fears offer some support to the Japanese Yen. The US Dollar, on the other hand, remains on the back foot amid concerns about the fallout from Trump's trade policies, which weigh on the currency pair. However, the uncertainty over the pace and timing of the next BoJ rate hike could limit JPY gains and cap the currency pair.

Gold attracts some buyers for the second straight day as trade jitters and geopolitical tensions ahead of the US-Iran nuclear talks underpin demand for safe-haven assets. Apart from this, a softer US Dollar further supports the bullion, though the underlying bullish sentiment could cap gains. Bulls might also opt to wait for acceptance above the $5,200 mark before positioning for any meaningful appreciating move.

AUD/USD remains stronger for the third successive session, trading around 0.7120 during the Asian hours on Thursday. The pair advances toward its three-year high of 0.7147, last touched on February 12, as the Australian Dollar strengthens following hotter-than-expected inflation data from Australia, reinforcing expectations of further interest rate hikes by the Reserve Bank of Australia this year.

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The Australian Dollar (AUD) skyrocketed to near a two-week high after a hotter-than-expected January inflation report, fueling speculation of additional rate hikes by the Reserve Bank of Australia (RBA).