USD faces pressure from rare earth export concerns in key pairs

The US dollar weakened across major pairs, with EUR/USD rising 0.3% to 1.1025 and USD/JPY falling 0.5% to 149.20, as traders digest implications of potential rare earth export restrictions. Growing tensions over critical mineral supplies have sparked concerns about future trade dynamics and dollar demand. AUD/USD benefited significantly, jumping 0.6% to 0.6680, as Australia's dominant position in rare earth production attracts investment flows. EUR/CHF remained stable at 0.9385, indicating safe-haven demand remains muted despite trade uncertainties. Technical indicators suggest the dollar index could test support at 105.50, with a break potentially accelerating losses toward 105.00. The rare earth issue adds a new dimension to global trade relations, potentially reshaping currency dynamics as nations secure critical supply chains. Traders should monitor developments closely as this theme could dominate forex movements in coming sessions.