- The Australian dollar remains under pressure in the middle of the current American trade tensions, given the solid economic links of Australia with China.
- The feeling of the market was mixed after reports suggested that the Trump administration could consider reducing prices on Chinese imports.
- The Chinese finance ministry noted that global economic growth continues to deal with opposite winds, with commercial disputes and prices.
Friday, the Australian dollar (AUD) is down compared to the US dollar (USD), withdrawing after gains in the previous session. Goutte The Aud / USD pair is motivated by American-Chinese persistent trade tensions, because the narrow trade relations of Australia with China makes it particularly sensitive to developments between the two economic giants.
The traders continued to follow the landscape of fluid world trade. The feeling of the market has remained mixed as a result of reports that the Trump administration could reduce prices on Chinese imports, according to the progress of potential talks with Beijing. China has expressed its desire to engage in discussions, provided that the United States ceases to publish new threats. However, the American secretary of the Treasury, Scott Bessent, minimized optimism, specifying that no unilateral price cut was proposed and that official negotiations have not yet started.
The Chinese finance ministry said on Friday that global economic growth remains slow, the tariff and commercial wars continuing to undermine economic and financial stability. The ministry has urged all parties to improve the international economic and financial system thanks to stronger multilateral cooperation, by Reuters.
Westpac planned for the reserve Bank of Australia (RBA) would have to reduce interest price By 25 base points at its next May 20 meeting. The RBA has adopted a data-based approach during recent quarters, which makes it difficult to forecast its actions beyond the next meeting with confidence.
The Australian dollar fights while the US dollar appreciates due to potential American trade agreements
- The US dollar index (DXY), which measures the USD against six main currencies, traces its recent losses from the previous session, negotiating nearly 99.60 at the time of the editorial staff. However, the greenback was confronted with winds -contrary winds following the publication of initial data for unemployment claims on Thursday.
- The United States Ministry of Labor (Dol) reported Thursday that initial unemployment benefits have increased for the week ending on April 19. Meanwhile, continuous unemployment complaints decreased by 37,000, falling to 1.841 million for the week ending on April 12.
- The Flash S&P Global Composite PMI for April fell to 51.2 from 53.5, indicating a slowdown in global commercial activity. Although the Manufacturer PMI increased to 50.7, the PMI of services has decreased sharply to 51.4, going from 54.4, stressing the softening of demand in the service sector.
- Chris Williamson of S&P Global said that growth dynamics are losing steam, while persistent inflationary pressures continue to complicate the efforts of the federal reserve to find a balance.
- According to Fed's April Book of April, concerns concerning prices have aggravated economic prospects in several regions of the United States (United States). Consumer expenditure has presented a mixed image, while the labor market has shown signs of softening, many districts signaling stable or slightly decreasing employment levels.
- The American Treasury Secretary, Scott Bessent, admitted Wednesday that current prices – 145% on Chinese products and 125% on American products – are unbearable and must be lowered for significant dialogue to begin.
- The director of the National Economic Council, Kevin Hassett, chief economic advisor of President Trump, said that the American commercial representative (USTR) has planned 14 meetings provided with foreign trade ministers. Hassett also noted that 18 written proposals had been received from these ministers. According to Hassett, China remains open to negotiations.
- The feeling of the market was stimulated by American president Donald Trump, who reassured investors that he did not intend to remove the president of the Federal Reserve (Fed), Jerome Powell, helping to facilitate concerns about the independence of the Central Bank and political orientation.
- The White House announced Tuesday that the Trump administration is progressing in the negotiation of commercial transactions aimed at softening the large prices introduced earlier this month. According to the American press secretary, Karoline Leavitt, 18 countries have already submitted commercial proposals in the United States, and the sales team of President Trump is expected to meet representatives of 34 nations this week to explore potential agreements.
- Judo Bank Manufacturing PMI dropped to a two -month lower 51.7 in April, compared to 52.1 in March. While manufacturing production has remained in expansion territory, the increase in new orders was modest. Meanwhile, the PMI services plunged slightly 51.4 from 51.6 in the previous month, and the composite PMI also spent 51.4 from 51.6.
The Australian dollar finds resistance near the heights of four months, the level of 0.6450
The Aud / USD pair oscillates around 0.6410 Friday, with daily chart Techniques retaining a bias bruise. The pair remains above the exponential mobile average of nine days (EMA), while the relative resistance index of 14 days (RSI) is stable above the brand 50, indicating a continuous rise.
Uplining, immediate resistance is located at the recent four -month level of 0.6439, set on April 22. A clear rupture above this level could open the door for a rally at the highest of five months of 0.6515.
The initial support is at the EMA of nine days, currently at 0.6365, with a stronger support near the EMA from 50 days to 0.6302. A sustained movement below these levels would weaken the bullish prospects And can trigger deeper losses, potentially exposing the bottom of March 2025 almost 0.5914.
AUD / USD: Daily graphic
Australian dollar price today
The table below shows the percentage of variation in the Australian dollar (AUD) compared to the main currencies listed today. The Australian dollar was the lowest compared to the US dollar.
| USD | Eur | GBP | Jpy | Goujat | Aud | Nzd | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.38% | 0.28% | 0.26% | 0.08% | 0.17% | 0.21% | 0.51% | |
| Eur | -0.38% | -0.10% | -0.08% | -0.31% | -0.22% | -0.15% | 0.12% | |
| GBP | -0.28% | 0.10% | 0.02% | -0.21% | -0.10% | -0.06% | 0.20% | |
| Jpy | -0.26% | 0.08% | -0.02% | -0.20% | -0.13% | -0.10% | 0.19% | |
| Goujat | -0.08% | 0.31% | 0.21% | 0.20% | -0.00% | 0.14% | 0.39% | |
| Aud | -0.17% | 0.22% | 0.10% | 0.13% | 0.00% | 0.05% | 0.32% | |
| Nzd | -0.21% | 0.15% | 0.06% | 0.10% | -0.14% | -0.05% | 0.25% | |
| CHF | -0.51% | -0.12% | -0.20% | -0.19% | -0.39% | -0.32% | -0.25% |
The thermal map shows the percentage of variations in the main currencies against each other. The basic currency is chosen in the left column, while the quotes motto is chosen in the upper row. For example, if you choose the Australian dollar of the left column and you move along the horizontal line to the US dollar, the percentage of variation displayed in the box will represent Aud (base) / USD (quote).
Australian dollar faq
One of the most important factors for the Australian dollar (AUD) is the level of interest rate set by the Bank of Australia (RBA) reserve. Because Australia is a country rich in resources, another key engine is the price of its greatest export, iron ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and its commercial balance. The feeling of the market – that investors have more risky assets (risk) or are looking for safety havens (risk) – is also a factor, with a positive risk for AUD.
The reserve bank of Australia (RBA) influences the Australian dollar (AUD) by fixing the level of interest rate that Australian banks can lend each other. This influences the level of interest rate in the economy as a whole. The main objective of the RBA is to maintain a stable inflation rate of 2 to 3% by adjusting increased or down interest rates. Relatively high interest rates compared to other large central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative softening and tightening to influence credit conditions, with the old Aud-Negative and the second positive audience.
China is the largest trading partner in Australia, the health of the Chinese economy therefore has a major influence on the value of the Australian dollar (AUD). When the Chinese economy is doing well, it buys more raw materials, Australian goods and services, to lift demand for the AUD and to raise its value. The reverse is the case when the Chinese economy does not develop as quickly as expected. Positive or negative surprises in Chinese growth data therefore often have a direct impact on the Australian dollar and its pairs.
The iron ore is the largest export in Australia, representing $ 118 billion per year according to 2021 data, China as the main destination. The price of the iron ore can therefore be an engine of the Australian dollar. Generally, if the price of the iron ore increases, the AUD also increases, as the overall demand for the currency increases. The opposite is the case if the price of the iron ore falls. Higher prices of iron ore also tend to lead to a greater probability of a positive commercial balance for Australia, which is also positive of the AUD.
The commercial balance, which is the difference between what a country earns its exports in relation to what it pays for its imports, is another factor that can influence the value of the Australian dollar. If Australia produces highly sought -after exports, its currency will gain only from the excess demand created from foreign buyers seeking to buy its exports in relation to what it spends to buy imports. Consequently, a positive net trade balance strengthens the AUD, with the opposite effect if the trade balance is negative.
