The Australian dollar edged higher to above $0.659 on Wednesday, approaching its highest level in seven weeks, boosted by higher commodity prices. Gold remained near record highs, driven by safe-haven demand and expectations of Federal Reserve rate cuts. Additionally, oil strengthened amid rising geopolitical tensions in the Middle East, while iron ore gained on robust Chinese demand as steel mills resumed operations after temporary shutdowns. Commodities make up a large share of Australia’s exports, so higher prices boost export revenues and the terms of trade, increasing demand for the AUD. On the policy front, markets see an 86% chance of an RBA cut in November, while rates are expected to be held at September’s meeting. Meanwhile, renewed global trade tensions limited gains for the risk-sensitive Aussie. Reports indicate that US President Trump has urged the EU to impose 100% tariffs on Chinese and Indian goods to pressure Russia, with the US signaling it may mirror such measures.