AUD/USD defies risk aversion and returns to levels near the YTD high at 0.6595

• The Aussie Dollar regains lost ground and approaches yearly highs at 0.6595.
• A hawkish RBA and hopes of further stimulus in China are underpinning the Aussie.
• US Jobless claims highlight the labour market's resilience and curb hopes of Fed cuts.
  

The Australian Dollar is showing an exceptional bullish tone on Friday's European morning session. The pair has reversed previous losses and trades practically flat on the day, at a short distance to the year-to-date high, at 0.6595.

The pair is on track for its third consecutive positive week, still buoyed by the Reserve Bank of Australia´s decision to maintain its benchmark interest rate at 3.85% earlier this week against a widely expected 25 bps rate.

Beyond that, market speculation about a new round of economic stimulus in China, Australia's major trading partner, is providing additional support to the Aussie. Market sources suggest that Beijing would be preparing further stimulus measures to support its real estate sector.

This news has contributed to easing negative pressure from growing trade uncertainty, after US President Trump announced a new batch of levies on some of its main trading partners, and hiked blanket tariffs to all other countries to 15% or 20% from the previous 10%.

Beyond that, US data released on Thursday showed an unexpected decline in Jobless Claims, which posted its lowest reading in the last seven weeks. These figures offset the dovish comments from Fed officials Waller and Daly, who reiterated the call for lower interest rates and provided additional support to the US Dollar.