The Aussie Dollar finished the week with gains of over 0.82% on Friday and up more than 1.20% for the week as the US Dollar tumbled following the US Treasury Department's announcement of a bond buyback for the long end of the curve. The AUD/USD trades at 0.7170, after rebounding near 0.7067.

The USD/CHF advanced on Friday, registering a modest 0.07% gain, trading at 0.8010. During the week, the pair finished with losses of over 1.49%, triggered by a drop in US yields on Wednesday, as the US Treasury tries to cap elevated yields on the 30-year bond.

The Mexican currency appreciates to levels last seen in May 2024 as the USD/MXN falls to a two-year low as the US Dollar tumbles even though business activity in the services sector improved. The exotic pair trades at 16.92, down 0.22% for the week and 0.50% for the week.

The US Dollar (USD) is muted against the Japanese Yen (JPY). USD/JPY traded in the low 159.00s at the time of writing on Friday.

EUR/USD heads for a fourth consecutive weekly gain on Friday, although it has erased its earlier intraday advance. At the time of writing, the pair trades around 1.1682 after briefly rising above 1.1700, its highest level since May 14.

USD/CHF holds firm on Friday as the US Dollar (USD) trims its intraday losses. At the time of writing, the pair trades around 0.8013 after slipping to 0.7949 on the previous day, its lowest level since June 17.

The New Zealand Dollar (NZD) extends its rally against the US Dollar (USD) on Friday, trading near 0.6000 and close to its highest level since end-May.

EUR/JPY trades around 185.70 on Friday at the time of writing, virtually unchanged on the day. The Japanese Yen (JPY) gains some support from firmer Japanese inflation data, but the move is offset by resilience in the Euro (EUR) following better-than-expected activity indicators in the Eurozone.

The Pound Sterling loses some ground against the US Dollar, though it remains poised to end the week with gains of over 0.60%, even as UK Retail Sales disappointed investors and US business activity improved in August. The GBP/USD trades at 1.3626, down some 0.02%.

AUD/USD edges higher on Friday, climbing to its highest level since June 3 as the Australian Dollar (AUD) outperforms all its major peers.

Commerzbank’s Senior Economist Dr. Vincent Stamer notes that Euro area business sentiment has stabilized at a moderate level, with the composite PMI edging up from 52.0 to 52.1 in August, slightly above consensus.

The Euro (EUR) is falling against the British Pound (GBP). EUR/GBP held the mid-0.8500s on Friday, hovering just below the 0.8570 area, even after a strong round of August flash Purchasing Managers Indexes (PMIs) on both sides of the cross.

Brown Brothers Harriman’s (BBH) Elias Haddad reports EUR/USD is firmer on broad US Dollar (USD) weakness and stronger-than-expected Eurozone August Purchasing Managers' Index (PMI) data. Elias Haddad highlights the composite PMI at a nine-month high, driven by manufacturing.

USD/JPY trades around 158.85 on Friday at the time of writing, edging lower after rebounding from the 158.00 level on Thursday.

EUR/USD reverses its earlier gains on Friday as the US Dollar (USD) steadies after retesting the three-month low touched the previous day. At the time of writing, the pair trades around 1.1677, easing from an intraday high of 1.1711, its highest level since May 14.

Brown Brothers Harriman’s (BBH) Elias Haddad says GBP/USD is firmer on broad US Dollar (USD) weakness despite mixed United Kingdom (UK) data.

Scotiabank strategists Shaun Osborne and Eric Theoret note that the Canadian Dollar (CAD) continues to show strength against the US Dollar (USD).

Nomura’s European Economics team notes that Euro area August Purchasing Managers' Index (PMI) showed resilient growth, led by a strong manufacturing rebound, while price pressures eased.

USD/CAD extends its decline on Friday as broad US Dollar (USD) weakness and elevated Oil prices provide a double boost to the Canadian Dollar (CAD). At the time of writing, the pair trades around 1.3745, while the Loonie is on track for a fourth consecutive weekly gain.

Brown Brothers Harriman’s (BBH) Elias Haddad highlights USD/JPY testing key support at its 200-day moving average as Japanese data firm.

EUR/GBP remains stuck in a narrow trading range this month, stalling the rebound from near 0.8460 in mid-July as buyers struggle to clear the 50-day Simple Moving Average (SMA).

TD Securities strategists argue that Section 338 tariff negotiations pose a binary risk for the Canadian Dollar (CAD) and USD/CAD.

The Australian Dollar (AUD) accelerated its rally against the US Dollar (USD) on Friday, hitting session highs above 0.7150 for the first time since early June and drawing closer to a three-month top, in the 0.7200 area.

The Euro (EUR) trades 0.21% higher at around 1.1710 against the US Dollar (USD) during the European trading session on Friday, the highest level seen in over three months.

NZD/USD extends its advance on Friday and trades around 0.5980 at the time of writing, up 0.62% on the day. The pair reached its highest level since early June and is heading for a solid weekly performance, mainly supported by persistent weakness in the US Dollar (USD).

The British Pound (GBP) rallied to fresh six-month highs against the US Dollar (USD) on Friday, boosted by stronger-than-expected UK business activity data, while the US Dollar remains depressed following the US Treasury’s plan to boost bond buybacks.

MUFG's Michael Wan notes that US longer-end yields have returned close to pre-buyback levels, with the 10-year at 4.7% and 30-year at 5.24%, weighing on risk assets.

EUR/GBP trades around 0.8570 on Friday at the time of writing, virtually unchanged on the day.

The USD/JPY pair struggles to capitalize on the previous day's recovery from the 158.00 mark, or a one-and-a-half-week low, and meets with fresh supply on Friday.

United Overseas Bank’s (UOB) Quek Ser Leang notes USD/JPY at 159.00 rebounded sharply from 158.00, but now looks set to trade between 158.50 and 159.35 intraday.