AUD saw a marginal recovery on Friday but was one of the worst-performing G10 currencies.
Falling commodity prices and Chinese economic woes weighed on the Aussie.
The USD remains steady after mixed PCE figures.
In Friday's session, the Australian Dollar (AUD) slightly recovered against the USD, as AUD/USD rebounded to 0.65515 due to corrective activities after intensive sell-offs in the previous sessions. The continual weakness in China's economy paired with depreciating iron ore prices remain the significant contributor to the AUD's dynamic performance.
Despite the visible vulnerability in the Australian economy, the Reserve Bank of Australia (RBA) delays its rate cuts due to persistently high inflation. This stance could potentially limit further depreciation of the AUD. As per current forecasts, the RBA might be one of the last among the G10 central banks to implement rate cuts, a condition that could extend the AUD's gains.
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