Australian Dollar Gains Amid RBA Rate Outlook and Yen Strengthening

The Australian dollar rose on Friday as Japan’s move to strengthen the yen triggered a sharp decline in the U.S. dollar, giving the AUD fresh support. Australia’s second‑quarter trimmed‑mean inflation slowed to 3.6% year‑on‑year, below the Reserve Bank of Australia’s 3.8% forecast, and the final‑demand Producer Price Index jumped 1.3% quarter‑on‑quarter, pushing annual PPI up 3.6%. Investors have largely dropped expectations of an RBA rate hike in August and September, with market odds of a November increase falling to about 50%.

Technical analysis notes immediate resistance around 0.6971 (SMA20) and support near 0.6917, with a sell recommendation near 0.7060 and a target of 0.6950. A related outlook for the AUD/THB pair sees a slightly bullish bias supported by the stronger Australian data, while weak Chinese PMI readings temper upside potential. The pair faces resistance near 23.50 and could move toward a target of 23.54‑23.58 if that level is broken.