AUD/USD rises to 1-week highs amid a weak dollar

• AUD/USD keeps rising and approaches 0.7200.
• Trump to deliver a statement on US government shutdown. 

The AUD/USD pair gained momentum during the American session on the back of a weaker US Dollar and climbed to 0.7181, the highest level in a week. It remains near the top ahead of a statement from US President Trump. Some media report signal that he could reopen the government. 

The dollar and the yen are among the worst performers on Friday as equity prices rally in Wall Street. The greenback weakened further today on Fed policy expectations. The WSJ mentioned that the FOMC is considering ending sooner than expected the balance sheet reduction program. Expectations start to favor a pause in the normalization of the policy helping yields move lower and increasing the demand for riskier assets. 

With today’s rally, AUD/USD erased weekly losses and rebounded sharply from weekly lows. Despite those gains, the Aussie continues to slide against the kiwi. AUD/NZD fell under 1.0500, to the lowest in three weeks.