- The Aud/USD rebounds towards the 0.6150 area in the American session on Wednesday, promoted by risk flows and a general weakness of the dollar.
- Trump’s surprising 90 -day pause in key tariffs elevates feeling, but Fed officials warn about long -term inflation risks.
- Despite the rebound, the AUD/USD maintains a bear technical tone with mobile socks and key oscillators sending mixed signals.
The Australian dollar was strengthened during the American session on Wednesday, rising towards the middle of the 0.6100, while the US dollar continued to retreat amid a risk rally in global markets. The pair bounced sharply after US President Donald Trump abruptly pauses most of the tariffs for 90 days, which caused an increase in actions and helped risk sensitive currencies.
The minutes of the March meeting of the Fed, published during the session, revealed that those responsible for the policy are dealing with “difficult compensation” due to the persistent inflationary pressures and a weakened growth panorama. From a technical point of view, the AUD/USD is still biased despite today’s rebound, since Momentum indicators and mobile socks continue to favor sellers.
Daily summary of market movements: the US dollar clings to recovery after the fed cautious signals
- The US dollar index (DXY) remained close to the 103.00 zone on Wednesday after recent significant losses, finding some stability after the publication of the minutes of the March meeting of the Federal Reserve. The minutes recognized an economic cross, highlighting that the risks of inflation can persist even when growth softens.
- The unexpected movement of President Trump to Pausar most “reciprocal” and 10% tariffs for 90 days improved the feeling of the market, raising Dow Jones above the level of 40,000 in a historical increase. In spite of this, the tariffs on China remain intact and rose to 125% in response to the countermelted of 84% of Beijing.
- Fed officials adopted a cautious tone, noting that uncertainty around commercial and inflation dynamics limits their ability to act quickly on interest rates. Barkin of the Fed of Richmond and Musalem of the Fed of St. Louis emphasized that the tariffs complicate the panorama of policies and could delay future tasas adjustments.
- The appetite for the risk returned broadly, since global investors welcomed the temporal relief of tariffs. However, markets remain cautious about persistent commercial tensions, especially given the exclusion of China from pause.
- The Aud benefited from the softer context of the USD, but its rise potential can be limited since commercial interruptions weigh strongly on the China dependent economy of Australia and support moderate expectations of the RBA.
Technical analysis
The AUD/USD shot towards the upper half of its intra -rank, but remains below the main technical obstacles, with its wider trend still biased down. While the price action became higher, the technical indicators paint a mixed picture.
The indicator of convergence/divergence of mobile socks (MACD) continues to print red bars, reinforcing a bearish trend despite today’s rally. The relative force index (RSI) is located just below 50, reflecting a flat but slightly negative tone. Interestingly, the raw material channel index (CCI) shows a purchase signal, while the stochastic oscillator is in neutral territory, highlighting the lack of strong conviction.
Mobile socks are still clearly bassist. Simple mobile socks (SMA) of 20, 100 and 200 days have a descending slope, offering resistance ahead. The 10 -day exponential (EMA) mobile average and the 10 -day SMA – around the area of 0.6130–0.6170 – also suggest winds against the bullies.
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.
