- The Australian dollar can face winds against since the White House confirmed that US tariffs on Chinese goods have increased to 145%.
- The Aud received an impulse after the reports that Australia is ready to restart trade negotiations with the European Union.
- The US dollar remains under pressure, affected by persistent concerns about global and national economic perspectives.
The Australian dollar (AUD) extends its profits for third consecutive session against the US dollar (USD) on Friday. However, the bunder of the aud/USD torque could be restricted since the White House confirmed that US cumulative tariffs on Chinese goods have increased to 145%. The announcement intensified the tensions in the current commercial dispute between the two largest economies in the world, generating concerns for Australia given its strong commercial relationship with China.
The Aud found support on Thursday from reports that Australia is preparing to resume trade negotiations with the European Union (EU). In addition, The Wall Street Journal reported that China also had conversations with the EU Chief of Commerce, Maros Sefcovic, expressing interest in strengthening trade, investment and industrial cooperation with the block.
China also increased tariffs over 84% of US imports and added six US companies – including defense and aerospace companies such as Shield AI and Sierra Nevada – to their commercial commercial list. He also introduced export controls on several US companies, such as American Photonics and Brinc Drones.
The Australian dollar can be seen while the US dollar fights due to persistent economic concerns
- The US dollar index (DXY), which measures the US dollar against a basket of six main currencies, is negotiating around 100.30 at the time of writing. The DXY continues to slip in the midst of persistent concerns about both global and American economic perspectives. Investors are now focusing their attention on the next publication of the US Production Price Index (IPP) and the preliminary data of Michigan’s consumer feeling, both scheduled for later on Friday.
- The US consumer price index (CPI) was moderated to 2.4% year -on -year in March, lowering 2.8% in February and below the market forecast of 2.6%. The underlying IPC, which excludes food and energy prices, rose 2.8% annually, compared to the previous 3.1% and below the 3.0% estimate. In monthly terms, the general CPI fell 0.1%, while the underlying CPC rose 0.1%.
- In a movement destined to relieve commercial tensions, President Trump announced on Wednesday a 90 -day pause in new tariffs for most US commercial partners, reducing 10% rates to create space for continuous negotiations. “The 90 -day pause is an encouraging sign that negotiations with most countries have been productive,” said Nationwide Mark Hacktt. “It also injects so necessary stability into a market shaken by uncertainty.”
- The minutes of the last meeting of the Federal Open Market Committee (FOMC) suggested that those responsible for the policy are almost unanimous in recognizing the double challenge of the increase in inflation and slow growth, warning that the Federal Reserve faces “difficult compensation” in the coming months.
- China’s CPI decreased 0.1% year -on -year in March, after a fall of 0.7% in February and being below the expectations of an increase of 0.1%. Monthly, the CPI fell 0.4%, worse than the fall of 0.2% of the previous month and the forecast figure. China’s IPP also contracted more than expected, falling 2.5% annually in March compared to a 2.2% drop in February and a 2.3% decrease projection.
- In Australia, the business feeling and moderate consumer has strengthened the expectations of a dovish turn by the Bank of the Australian Reserve (RBA). The markets are now valuing up to 100 basic points in feat cuts this year, starting in May, with probable additional reductions in July and August.
Technical analysis: The Australian dollar rises to 0.6250 near the 50 -day EMA
The aud/USD torque is around 0.6230 on Friday, with the indicators of the daily graph showing a slight bullish inclination while the pair is negotiated above the nine -day exponential mobile average (EMA). However, the 14 -day relative force (RSI) index remains just below the 50’s mark, indicating that the bearish pressure has not completely disappeared.
The immediate support is observed in the nine -day EMA, currently at 0.6176. A decisive breakdown below this level could undermine the short -term bullish impulse and open the door to a movement towards the area of 0.5914 – his lowest point since March 2020 – be followed by key psychological support in 0.5900.
Towards the rise, the initial resistance is located in the 50 -day EMA, around 0.6262. A sustained movement above this level could pave the way for a stronger recovery, potentially pushing the aud/usd torque towards a maximum of four months of 0.6408.
AUD/USD: Daily graphic
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 US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.92% | -0.31% | -0.56% | -0.29% | -0.14% | -0.63% | -0.43% | |
| EUR | 0.92% | 0.59% | 0.28% | 0.60% | 0.77% | 0.26% | 0.47% | |
| GBP | 0.31% | -0.59% | -0.26% | 0.02% | 0.18% | -0.35% | -0.12% | |
| JPY | 0.56% | -0.28% | 0.26% | 0.27% | 0.46% | 0.00% | 0.23% | |
| CAD | 0.29% | -0.60% | -0.02% | -0.27% | 0.14% | -0.34% | -0.13% | |
| Aud | 0.14% | -0.77% | -0.18% | -0.46% | -0.14% | -0.50% | -0.29% | |
| NZD | 0.63% | -0.26% | 0.35% | -0.01% | 0.34% | 0.50% | 0.22% | |
| CHF | 0.43% | -0.47% | 0.12% | -0.23% | 0.13% | 0.29% | -0.22% |
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).
Faqs Australian dollar
One of the most important factors for the Australian dollar (Aud) is the level of interest rates set by the Australian Reserve Bank (RBA). Since Australia is a country rich in resources, another key factor is the price of its greatest export, iron mineral. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and commercial balance. The feeling of the market, that is, if investors are committed to more risky assets (Risk-on) or seek safe shelters (Risk-Off), it is also a factor, being the positive risk-on for the AUD.
The Australian Reserve Bank (RBA) influences the Australian dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of the interest rates of the economy as a whole. The main objective of the RBA is to maintain a stable inflation rate of 2% -3% by adjusting the interest rates or the low. Relatively high interest rates compared to other large central banks support the AU, and the opposite for the relatively low. The RBA can also use relaxation and quantitative hardening to influence credit conditions, being the first refusal for the AU and the second positive for the AUD.
China is Australia’s largest commercial partner, so the health of the Chinese economy greatly influences the value of the Australian dollar (Aud). When the Chinese economy goes well, it buys more raw materials, goods and services in Australia, which increases the demand of the AU and makes its value upload. The opposite occurs when the Chinese economy does not grow as fast as expected. Therefore, positive or negative surprises in Chinese growth data usually have a direct impact on the Australian dollar.
Iron mineral is the largest export in Australia, with 118,000 million dollars a year according to data from 2021, China being its main destination. The price of iron ore, therefore, can be a driver of the Australian dollar. Usually, if the price of iron ore rises, the Aud also does, since the aggregate demand of the currency increases. The opposite occurs when the price of low iron ore. The highest prices of the iron mineral also tend to lead to a greater probability of a positive commercial balance for Australia, which is also positive for the AUD.
The commercial balance, which is the difference between what a country earns with its exports and what it pays for its imports, is another factor that can influence the value of the Australian dollar. If Australia produces highly requested exports, its currency will gain value exclusively for the excess demand created by foreign buyers who wish to acquire their exports to what you spend on buying imports. Therefore, a positive net trade balance strengthens the AUD, with the opposite effect if the commercial balance is negative.
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.
