The Australian Dollar edged lower on Thursday amid a broad sell-off in AI-related stocks that weighed heavily on Wall Street. According to FX Street, the AUD declined by 0.11%, with the AUD/USD pair trading around 0.6960 at the time of reporting.
This downturn in risk appetite prompted investors to seek safety in traditional haven currencies, shifting flows away from the US Dollar toward the Japanese Yen and Swiss Franc. FX Street noted that these safe-haven moves coincided with losses on Wall Street and declining US yields.
For Japanese investors, the increased demand for the Yen reflects ongoing caution in global markets, underscoring the currency’s role as a reliable refuge during periods of equity volatility and geopolitical uncertainty.