USD strengthens on China rare earth export uncertainty

The US dollar gained 0.2% against major currencies amid ongoing uncertainty over China's rare earth export policies. China's commerce ministry confirmed approving "a certain number" of rare earth export licenses but provided no details on quantities or recipient countries, particularly regarding US firms. This ambiguity has heightened supply chain concerns for critical technology sectors, supporting safe-haven dollar demand. AUD/USD fell 0.35% to 0.6480 as risk sentiment deteriorated, while USD/CNH edged up 0.1% to 7.2850. The lack of transparency suggests potential trade tensions could escalate, with implications for global supply chains and currency markets. Technical analysis shows AUD/USD testing support at 0.6475, with a break potentially targeting 0.6450. Traders are monitoring US-China trade relations closely as any restrictions could trigger broader risk-off flows benefiting the dollar.