The AUD/USD earns strongly up to 0.6420 while the US dollar yields intradic earnings.
US president Trump sees a decalsed in the Commercial war with Beijing.
Investors expect the preliminary data of the US PMI of the US Global for April.
The aud/USD torque is strongly recovered to about 0.6420 in the European session on Wednesday. The Australian pair bounces after a strong correction to about 0.6350 earlier in the day from a maximum of more than four months of 0.6440 registered on Tuesday.
The Australian dollar (AUD) is strengthened since Washington has expressed confidence in the decala of a commercial war with China. The Aud is a proxy play of the Chinese economy, given the significant dependence of the Australian economy of its exports to China.
Australian dollar Price today
The lower table shows the percentage of change of the Australian dollar (AUD) compared to the main currencies today. Australian dollar was the strongest currency against the Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.24% | 0.22% | 0.28% | 0.14% | -0.68% | -0.29% | 0.57% | |
| EUR | -0.24% | -0.03% | 0.05% | -0.11% | -0.86% | -0.55% | 0.31% | |
| GBP | -0.22% | 0.03% | 0.08% | -0.08% | -0.84% | -0.51% | 0.37% | |
| JPY | -0.28% | -0.05% | -0.08% | -0.14% | -0.85% | -0.60% | 0.31% | |
| CAD | -0.14% | 0.11% | 0.08% | 0.14% | -0.72% | -0.41% | 0.44% | |
| Aud | 0.68% | 0.86% | 0.84% | 0.85% | 0.72% | 0.33% | 1.18% | |
| NZD | 0.29% | 0.55% | 0.51% | 0.60% | 0.41% | -0.33% | 0.88% | |
| CHF | -0.57% | -0.31% | -0.37% | -0.31% | -0.44% | -1.18% | -0.88% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Australian dollar of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the Aud (base)/USD (quotation).
On Tuesday, the president of the United States (USA) Donald Trump said the discussions with China are going well, adding that he believes they will reach an agreement. Trump said pekin tariffs “would not be as high as 145%, but they would not be zero.” Market participants took Trump’s comments as a significant step towards closing an agreement with China. Such scenario would be a victory for both bigger powers in the world.
Meanwhile, China is open to negotiate a bilateral commercial agreement with mutual respect and confidence. Beijing has urged the US to stop making threats if you want an agreement. “This is not the correct way to deal with China, and it is not feasible,” said Chinese ministry spokesman Guo Jiakun and added: “US should dialogue with China on the basis of equality and mutual benefit.”
In the front of the US dollar (USD), the American dollar index (DXY) has given its initial profits and falls back to about 99.00 despite the fact that the fears of an intense commercial war between the US and China have decreased and Trump has moved away from the market expectations that it can fire the president of the Federal Reserve (Fed) Jerome Powell.
In Wednesday’s session, investors will focus on the preliminary data of the purchasing managers index (PMI) of the US Global S&P for April, which will be published at 13:45 GMT.
Commercial War between the US and China Faqs
In general terms, “Trade War” is a commercial war, an economic conflict between two or more countries due to the extreme protectionism of one of the parties. It implies the creation of commercial barriers, such as tariffs, which are in counterbarreras, increasing import costs and, therefore, the cost of life.
An economic conflict between the United States (USA) and China began in early 2018, when President Donald Trump established commercial barriers against China, claiming unfair commercial practices and theft of intellectual property by the Asian giant. China took retaliation measures, imposing tariffs on multiple American products, such as cars and soybeans. The tensions climbed until the two countries signed the Phase one trade agreement between the US and China in January 2020. The agreement required structural reforms and other changes in China’s economic and commercial regime and intended to restore stability and confidence between the two nations. Coronavirus pandemia diverted the attention of the conflict. However, it is worth mentioning that President Joe Biden, who took office after Trump, kept the tariffs and even added some additional encumbrances.
Donald Trump’s return to the White House as the 47th US president has unleashed a new wave of tensions between the two countries. During the 2024 election campaign, Trump promised to impose 60% tariff particularly in investment, and directly feeding the inflation of the consumer price index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
