Australian Dollar finished the week at highs since January as markets bet on a dovish Fed

• AUD/USD remains at highest level since January near 0.6800.
• Hot PPI data didn’t stop the pair in its upward trend.
• Monetary policy divergence between RBA and Fed stir the pair.

The Australian Dollar (AUD) upheld its positive trajectory against the USD in Friday’s session, rising by 0.30% to 0.6780. The AUD resumed its gains with market participants adjusting their stakes on the Federal Reserve (Fed) after the release of US inflation figures. Hot Producer Price Index (PPI) figures form the US didn’t trigger a recovery in the Greenback.

The Reserve Bank of Australia (RBA) is poised to be among the last G10 nations’ central banks to initiate rate cuts, a factor that could extend the AUD’s gains.