AUD/USD extends gains, approaching 0.6540 highs on risk appetite  

• The Aussie Dollar is on track for a nearly 1% weekly gain, boosted by a positive market mood.
• Upbeat Chinese exports data seen this week are underpinning demand for the AUD.
• The US Dollar remains stuck near lows with traders awaiting replacements for the Fed's vacancies.
  

The Aussie Dollar remains outperforming its peers on Friday, fuelled by a moderate risk appetite. The pair has reversed a previous decline and is trading higher for the fourth consecutive day, approaching weekly highs at 0.6530 and on track to a nearly 1% rally this week.

Investors are still celebrating the strong export figures from China released on Thursday. China's exporting activity increased 8% in July after a 7.2% rise in June, and the trade surplus widened to CNY 705.1 billion from CNY 585,96 billion in the previous month.

These figures suggest that the Asian leading economy is weathering Trump's tariffs, and has improved confidence in the country's economic outlook, contributing to buoy the market mood.

Rumours about changes in the Fed keep weighing on the USD

The US Dollar, on the other side, remains steady near lows, with traders wary of placing large US Dollar bets amid rumours of replacements in the Federal Reserve. Speculation about Governor Waller replacing Trump and economic adviser Miran filling Kugler's vacancy at the Board feeds investors' hopes of further rate cuts in the next months.

U.S. jobless Claims figures released on Thursday added to the evidence of a weakening labour market. Claims for unemployment benefits increased by 8,000 to 226,000, instead of the 221,000 forecasted by market analysts.

Later on Thursday, St Louis Fed Governor Raphael Bostic curbed hopes of rate cur¡ts in September, warning about the potential impact of Tariffs, but markets are still pricing neary 90% chances that the central bank will ease uts monetary policy after the summer. 

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