- The AUD/USD pair is trading at 0.6400, up to 0.40% during the day.
- US president Trump confirmed trade talks with China, but no major success achieved.
- Investors are waiting for the upcoming US Nonfarm Payrolls (NFP) and GDP data, important for the Federal Reserve's perspective.
- US dollar remains under pressure, awaiting further economic clarity from basic data this week.
The AUD/USD pair continues to trade around 0.6400 as investors for basic economic data from the United States (US) this week. The focus is on nonfarm payroll (NFP) and GDP numbers, which will provide insights into the US labor market strength and economic growth, which can influence Federal Reserve (FED) financial policy decisions.
Daily Digest Market Movers: US data dedicated as trading tensions continue
- US president Trump confirmed the trade in China, but no success was achieved.
- Investors are dedicated to the upcoming US Nonfarm Payrolls (NFP) and GDP data, which will provide important insights.
- The US Dollar Index (DXY) remains close to 99.60 while market participants are awaiting additional economic signals.
- The market is careful as US trade policies continue to create uncertainty for the global economy.
- The upcoming federal reserve policy decisions depend on key economic data, including PCE, NFP, and GDP.
- In Australia, investors are awaiting CPI data, with a possible slowdown in inflation pressure that influences the next RBA transfer.
- The uncertainty around US-China's trade relations continues to affect sentiment in the global market and the Australian dollar.
- The recent US dollar recovery may face challenges depending on the outcome of the upcoming economic reports.
- A weak-as-expect NFP or GDP report can lead to updated downside pressure in the US dollar.
- The market focus on US -economic data emphasizes the potential for significant market transitions this week.
- Trade tensions in China remain a major source of uncertainty for both the US dollar and global trade.
Technical Analysis: AUD/USD testing resistance, Momentum is not intact
The AUD/USD pair currently trades at 0.6400, up to 0.41% during the day. The price action is enclosed within the range of day 0.6368 and 0.6430. Kamag -child Index Index (RSI) is neutral at 59.55, while moving the average convergence (MACD) develops a purchase signal. The ultimate oscillator and stochastic %k are both neutral, suggesting a lack of market momentum. Short-term average transfers support the bullish outlook, along with the 10-day EMA at 0.6368 and the 10-day SMA at 0.6384. However, the 200-day SMA at 0.6466 presents the resistance. Support levels can be found at 0.6411, 0.6402, and 0.6384, while the resistance is at 0.6466. The pair is a test of resistance and may be higher if bullish continues.
Tariffs FAQ
Tariffs are customs duties imposed on certain goods imports or a category of products. Tariffs are designed to help local producers and manufacturers become more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.
Although tariffs and taxes both generate government revenue to fund public goods and services, they have a lot of differences. Tariffs are prepaid on the entry port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by the importers.
There are two schools of thinking about economists about the use of tariffs. While some argue that tariffs are required to protect domestic industries and address trading imbalances, others see them as a harmful tool that can potentially drive prices higher than long-term and lead to a destructive trade war by encouraging tit-for-tat tariffs.
During the presidential election run-up in November 2024, Donald Trump clarified that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada cost 42% of the US total import. During this time, Mexico stood as the leading export with $ 466.6 billion, according to the US Census Bureau. Therefore, Trump wants to focus on these three countries when imposing tariffs. He also plans to use the income generated by tariffs to lower personal income taxes.
