AUD/USD jumps to near 0.6730 as US Dollar underperforms amid US-EU disputes

AUD/USD rises to near 0.6730 as the US Dollar falls further amid disputes between the US and the EU over Greenland.
US Treasury Secretary Bessent said that Washington won’t withdraw NATO’s membership amid US-EU disputes.
Investors await Australian employment data for fresh cues on the RBA’s monetary policy outlook.

Sagar Dua FXStreet

The AUD/USD pair trades 0.25% higher to near 0.6730 during the European trading session on Tuesday. The Aussie pair gains as the US Dollar (USD) underperforms its peers amid disputes between the United States (US) and the European Union (EU) over the future of Greenland.

During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is down 0.55% to near 98.50.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Swiss Franc.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.69%	-0.37%	-0.19%	-0.30%	-0.25%	-0.71%	-0.95%
EUR	0.69%		0.33%	0.52%	0.39%	0.44%	-0.03%	-0.26%
GBP	0.37%	-0.33%		0.19%	0.07%	0.11%	-0.35%	-0.59%
JPY	0.19%	-0.52%	-0.19%		-0.12%	-0.08%	-0.55%	-0.78%
CAD	0.30%	-0.39%	-0.07%	0.12%		0.05%	-0.42%	-0.65%
AUD	0.25%	-0.44%	-0.11%	0.08%	-0.05%		-0.46%	-0.68%
NZD	0.71%	0.03%	0.35%	0.55%	0.42%	0.46%		-0.24%
CHF	0.95%	0.26%	0.59%	0.78%	0.65%	0.68%	0.24%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

The US Dollar has been battered heavily as the “Sell America trade” intensifies, with investors exploring other safe-haven assets, due to fears of straining alliance between the US and the EU. Over the weekend, US President Donald Trump imposed 10% tariffs on several EU members and the United Kingdom (UK) as they opposed Washington’s plans to purchase Greenland.

Meanwhile, US Treasury Secretary Scott Bessent said in the World Economic Forum (WEF) at Davos that Washington doesn’t intend to leave NATO's membership amid disputes over Greenland.

On the monetary policy front, US Treasury Secretary Bessent said that Washington could announce the name of the Federal Reserve’s (Fed) next Chairman “as early as next week, and there are four candidates currently”.

Though investors have underpinned the Australian Dollar against the US Dollar, the former is underperforming its other peers ahead of the release of Australia’s employment data for December on Thursday. Investors will pay close attention to the Australian labor market data to get fresh cues on the Reserve Bank of Australia’s (RBA) monetary policy outlook.

The Australian labor market report is expected to show that the economy created 30K fresh jobs after firing 21.3K employees in November. The Unemployment Rate is seen rising to 4.4% from the prior release of 4.3%.

Economic Indicator

Employment Change s.a.

The Employment Change released by the Australian Bureau of Statistics is a measure of the change in the number of employed people in Australia. The statistic is adjusted to remove the influence of seasonal trends. Generally speaking, a rise in Employment Change has positive implications for consumer spending, stimulates economic growth, and is bullish for the Australian Dollar (AUD). A low reading, on the other hand, is seen as bearish.

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