- The Australian dollar remains stable despite the publication of a weaker Westpac index on Wednesday.
- China’s GDP grew by 5.4% year -on -year in the first quarter, exceeding 5.1% expected and maintaining a constant rhythm of expansion.
- The US dollar remains content before the publication of the March retail sales data later in the day.
The Australian dollar (aud) extends its winning streak in front of the US dollar (USD) for sixth consecutive session on Wednesday, with the AUD/USD pair remaining firm after the publication of the Westpac advance of Australia. The annualized growth rate six months of the index, which forecasts the economic impulse in relation to the trend during the next three to nine months, was reduced to 0.6% in March from 0.9% in February.
China’s economy grew at an annual rate of 5.4% in the first quarter of 2025, matching the pace observed in the fourth quarter of 2024 and exceeding 5.1% market expectations. In quarterly terms, GDP increased 1.2% in the first quarter, after a 1.6% increase in the previous quarter, being below the predicted gain of 1.4%.
Meanwhile, China’s retail sales shot 5.9% year -on -year, exceeding 4.2% expectations and increasing from 4% in February. Industrial production also exceeded expectations, increasing 7.7% compared to 5.6% predicted and 5.9% in February.
The Aud also received support from the best feeling of global risk after the exclusion of key technological products from the new “reciprocal” tariffs proposed by US President Donald Trump. Exemptions, which cover smartphones, computers, semiconductors, solar cells and flat panel screens, are largely applied to goods manufactured in China, the largest commercial partner in Australia and a key buyer of their raw materials.
The 10 -year Australian government bond performance fell to 4.33% while investors digest the minutes of the Australian Reserve Bank (RBA) meeting from March 31 to April 1. The minutes indicated that the data of the first quarter showed that the average trimmed inflation fell below 3% while the consumer’s demand seemed to be increasing.
The RBA said that, although the May meeting could be an adequate time to review the monetary policy, no decision had been made. The markets are currently valuing a 25 basic points rate cut in May and expect approximately 120 basic flexibility points during the year. The attention is now focused on the Employment Report on Thursday, which could provide key labor market signals and influence the next RBA movement.
The Australian dollar advances while the US dollar remains contained in the middle of the erosion of investor confidence
- The American dollar index (DXY), which tracks the USD in front of a basket of six main currencies, is quoting down about 99.80 at the time of writing. Later in the day, US retail sales data will be published for March, which could provide information about how the growing tariff concerns are influencing consumer spending.
- A recent survey on the feeling of the consumer made by the Bank of the Federal Reserve of New York shows a drastic increase in the number of households that expect greater inflation, worse labor perspectives and a worsening of credit conditions in the coming months.
- The president of the Atlanta Fed, Raphael Bostic, commented during the Tuesday morning market session that the US Central Bank still has a long way to go to achieve its 2%inflation target, which generates doubts about the expectations of the additional cuts market of interest rates.
- The feeling index of the University of Michigan fell to 50.8 in April, while the expectations of inflation at one year shot at 6.7%. The US Production Price Index (PPI) rose 2.7% year -on -year in March, lowering 3.2% in February, with the underlying rate decreasing to 3.3%. Unemployment requests increased to 223,000, although continuous applications decreased to 1.85 million, which points to a mixed image in the labor market.
- The growing commercial tensions between the US and China have revived concerns about a possible global economic slowdown. On Friday, China’s Ministry of Finance announced a strong increase in tariffs on US goods, raising them from 84% to 125%. This action occurred in response to President Trump’s previous decision to increase tariffs on Chinese imports to 145%.
- The US consumer price index (ICC) was reduced to 2.4% year -on -year in March, lowering 2.8% in February and below the market forecast of 2.6%. The underlying ICC, which excludes food and energy prices, increased 2.8% annually, compared to the previous 3.1% and below the 3.0% estimate. In monthly terms, the CPI general fell 0.1%, while the underlying ICC rose 0.1%.
- The Popular Bank of China (PBOC) is expected to implement a greater monetary relief in the second quarter of 2025. This includes a possible reduction of 15 basic points in the preferential loan rate (LPR) and a minimum reduction of 25 basic points in the reserve requirement rate (RRR). According to CITI analysts, cited in a Reuters report, there is a growing probability that internal stimulus measures will be accelerated in response to increasing external pressures.
The Australian dollar maintains profits about 0.6350 due to persistent bullish bias
The aud/USD torque is around 0.6350 on Wednesday, with the technical indicators of the daily graphic pointing to an upward perspective. The torque continues to quote above the exponential mobile socks (EMA) of nine and 50 days, while the 14 -day relative force index (RSI) is maintained above the neutral brand of 50, supporting the ongoing uphill impulse.
On the positive side, a rupture above 0.6400 – the psychological barrier – could pave the way for a new test of the maximum of four months in 0.6408, seen for the last time on February 21.
The initial support is found in the EMA of 50 days about 0.6273, followed by the nine -day EMA around 0.6262. A clear fall below these levels would challenge the short -term bullish structure and could open the road to the region of 0.5914 – his lowest level since March 2020 – and the critical psychological brand of 0.5900.
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 | -0.52% | -0.23% | -0.51% | -0.12% | -0.23% | -0.18% | -0.94% | |
| EUR | 0.52% | 0.32% | 0.02% | 0.39% | 0.53% | 0.37% | -0.41% | |
| GBP | 0.23% | -0.32% | -0.30% | 0.09% | 0.22% | 0.05% | -0.68% | |
| JPY | 0.51% | -0.02% | 0.30% | 0.39% | 0.58% | 0.39% | -0.47% | |
| CAD | 0.12% | -0.39% | -0.09% | -0.39% | 0.17% | -0.02% | -0.73% | |
| Aud | 0.23% | -0.53% | -0.22% | -0.58% | -0.17% | -0.19% | -0.90% | |
| NZD | 0.18% | -0.37% | -0.05% | -0.39% | 0.02% | 0.19% | -0.73% | |
| CHF | 0.94% | 0.41% | 0.68% | 0.47% | 0.73% | 0.90% | 0.73% |
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.
