The AUD/USD currency pair closed higher on Friday, trading at 0.7171, marking a 0.38% gain for the day, according to FX Street. Despite this daily increase, the pair finished the week down by 0.45% as investors anticipate a Federal Reserve interest rate hike next week.
The prospect of higher US interest rates has strengthened the US Dollar, putting downward pressure on the Australian Dollar over the course of the week. Market participants are closely watching the Fed's upcoming decision, which could significantly impact currency movements.
For Japanese investors, fluctuations in AUD/USD are important to monitor given Australia's role as a key trading partner and the influence of US monetary policy on global FX markets, including those affecting the yen.