During the Asian session on Friday, the AUD/USD experienced a slight uptick yet remained close to its nearly two-week low. The modest price growth lacked bullish conviction as global economic tensions persist. The low was touched the previous day amid concerns over a potential trade war, influenced by US President Donald Trump's tariff plans, which have raised fears about their impact on both global and domestic growth.
Meanwhile, the USD/JPY has been under pressure for the third consecutive day, hovering near a monthly low. Speculation about further rate hikes by the Bank of Japan continues, fueled by a rise in core consumer prices in Tokyo. However, the yen's decline is tempered by the ongoing concerns surrounding Trump's tariff proposals, which have made investors wary of economic repercussions.
In the cryptocurrency realm, community members have shown support for researcher Danny Ryan to take on the role of Executive Director at the Ethereum Foundation. This development highlights the community's interest in driving forward leadership within the organization as they navigate the evolving digital currency landscape.
In Europe, the European Central Bank has implemented another interest rate cut of 25 basis points. This move signals a continuation of their rate cut cycle as they aim to stimulate economic growth across the continent. Similarly, in Australia, expectations for a potential interest rate cut by the Reserve Bank of Australia next month have been bolstered by signs of easing inflation.
China's ongoing economic challenges have also played a role in capping the Australian dollar despite a modest strength in the USD. These economic woes highlight the interconnected nature of global markets and their influence on currency valuations.
The uncertainty surrounding global trade policies has bolstered demand for safe-haven assets. Consequently, gold prices reached a fresh record high on Friday, suggesting a potential continuation of this upward momentum beyond the $2,800 mark.