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Australian dollar: caught between resilience and resistance

July 20 2026 4 mins

The Australian dollar starts the week parked just below 0.7000. Several attempts to settle back above 0.70 last week were met with resistance. Softer-than-expected US inflation initially supported risk assets and lifted the Australian dollar, but enthusiasm faded as the US-Iran conflict escalated and the sell off in technology stocks accelerated. This week is pretty thin in terms of data and event risk beyond local June labour force figures. The fate of AI/semiconductors and the escalating war will be more impactful.

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