- Australia's dollar remains under pressure while the US dollar is strengthening, supported by the signs of avoiding US-China tensions.
- Moving China to exclude some US imports from 125% tariffs has led to some optimization for better trade relationships.
- The Federal Reserve is at the time of the BLACKOUT in advance of the May 7 Federal Open Market Committee meeting.
The Australian Dollar (AUD) expands the loser for a second -to -section session on Monday. The AUD/USD pair is under pressure because the US dollar (USD) boosts amidst the signs of avoiding tensions between the US and China.
China announced several US imports from 125% tariffs this Friday, according to business resources. This step has aroused hope that the long trade war between the two largest economies in the world may be close.
However, Reuters mentioned a Chinese embassy spokesman Friday, who firmly rejected any current negotiations with the US, saying, “China and the US do not have any consultation or talks with tariffs.” The speaker encouraged Washington to “stop creating confusion.”
Headwinds are also facing the AUD as the expectations are mounted that the Reserve Bank of Australia (RBA) will deliver another 25-base-point rate cut in May, as economic uncertainty deepens and concerns in the global trade environment have intensified.
Australia's dollar falls as the US dollar captures land amidst avoiding US-China concerns
- The US Dollar Index (DXY), which measures the USD against six major currencies, gets land for a second -to -day -day, trading near 99.60 at the time of writing. The Federal Reserve (FED) is in Blackout Mode leading the May 7 Federal Open Market Committee (FOMC) meeting.
- U.S. Secretary of Agriculture Brooke Rollins said on Sunday, as the Reuters reported, that the Trump administration was conducting a day -to -day discussion in China about tariffs. Rollins emphasized that the conversations are ongoing and that trade agreements with other countries are “very close.”
- Michael Hart, president of the American Chamber of Commerce in China, said it is encouraging to see US and China tariffs reviewing tariffs. Hart noted that while exclusion lists for specific categories were reported in works, no official announcements or policies were released. Both China's Ministry of Commerce and the US Commercial Department are currently gathering input in this regard.
- The US Department of Labor (DOL) reported on Thursday that preliminary applications for unemployment benefits increased for the week ending on April 19. The initial claim of unemployment increased to 222,000, slightly more than expectations and from the revised figure of last week of 216,000. Meanwhile, the constant unemployment has been denied by 37,000, which fell to 1.841 million for the week ending on April 12.
- Treasury Secretary Scott Bescent acknowledged Wednesday that the current tariffs – 145% of Chinese goods and 125% of US goods – are unstable and must be lowered to begin significant dialogue to begin.
- National Economic Council director Kevin Hassett, head of President Trump's economic advisor, said the US Trade Representative (USTR) has 14 meetings scheduled to foreign trade ministers. Hassett also noted that 18 written proposals were received from these ministers. According to Hassett, China remains open to negotiations.
- Westpac on Thursday announced that the Reserve Bank of Australia (RBA) will lower interest rates through 25 points basis for the coming May 20 meeting. The RBA has adopted a data -driven approach to previous quarters, making it difficult to predict its actions beyond the next meeting with confidence.
- A Beijing official once again said on Thursday that no “economic and trade negotiations” were conducted and emphasized that the US should “fully cancel all unilateral tariff measures” to provide ways for conversations.
- China's financial ministry stated on Friday that global economic growth remains lazy, with tariffs and trade wars that continue to disturb economic and financial stability. The ministry urged all parties to enhance the international economic and financial system through stronger multilateral cooperation, per Reuters.
The Australian dollar remains below 0.6400; Resistance appears near nine -day EMA
The AUD/USD pair traded around 0.6390 on Monday, along with a sunny chart showing a bullish bias. The pair continues to hold above the nine-day exponential transfer of the average (EMA), while the 14-day relative index index (RSI) remains stable above 50 levels, suggesting a long momentum.
Upside down, immediate objection can be seen in the past four months high of 0.6439, posted on April 22. A decisive rest above this level could provide a way for a rally to five months tall at 0.6515.
The initial support aligned with the nine-day EMA of 0.6367, followed by stronger support near the 50-day EMA at 0.6305. A prolonged collapse below these levels will weaken bullish setup and can lead to deeper losses, with a low March 2020 near 0.5914 visible.
AUD/USD: Daily -Gales Chart
The price of Australia's dollar today
The table below shows the percentage change of Australian dollar (AUD) against the current currencies now. Australia's dollar is the vulnerable against Swiss Franc.
| USD | EUR | Gbp | Jpy | Cad | Aud | Nzd | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.08% | 0.18% | 0.01% | 0.09% | 0.24% | 0.12% | -0.16% | |
| EUR | -0.08% | 0.04% | -0.08% | -0.02% | 0.06% | 0.03% | -0.26% | |
| Gbp | -0.18% | -0.04% | -0.13% | -0.04% | 0.00% | -0.02% | -0.29% | |
| Jpy | -0.01% | 0.08% | 0.13% | 0.09% | 0.27% | -1.30% | 0.09% | |
| Cad | -0.09% | 0.02% | 0.04% | -0.09% | 0.04% | 0.04% | -0.23% | |
| Aud | -0.24% | -0.06% | -0.01% | -0.27% | -0.04% | -0.03% | -0.32% | |
| Nzd | -0.12% | -0.03% | 0.02% | 1.30% | -0.04% | 0.03% | -0.28% | |
| CHF | 0.16% | 0.26% | 0.29% | -0.09% | 0.23% | 0.32% | 0.28% |
The heat map shows the percentage change of basic currencies against each other. The base currency is taken from the left column, while the quote currency is taken from the top row. For example, if you choose the Australian dollar from the left column and move to the horizontal line in the US dollar, the percentage change shown in the box represents AUD (Base)/USD (quote).
Australian Dollar FAQs
One of the most significant factors for the Australian dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a country that is rich in the resource of another major driver is the price of its largest export, steel. China's economic health, the largest trading partner, is a factor, as well as inflation in Australia, its growth rate and trade balance. The market feelings-whether investors take more risky assets (risk-on) or seeking safe havens (risk-off)-also a factor, with a positive risk for AUD.
The Reserve Bank of Australia (RBA) influences the Australian dollar (AUD) by setting the level of interest rates that Australia banks can lend to each other. It influenced the level of economic interest rates as a whole. The main purpose of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. The relatively high interest rate compared to other major central banks supports the AUD, and the opposite for relatively low. The RBA can also use the amount of easing and tightening to influence credit conditions, including the former aud-negative and the last aud-positive.
China is the largest Australian trading partner so China's economic health is a major influence on the value of the Australian dollar (AUD). When China's economy properly buys more raw materials, goods and services from Australia, demands for the AUD, and push its value. The opposite is the case when China's economy does not grow as fast as expected. Positive or negative surprise on Chinese growth data, therefore, often has a direct impact on the Australian dollar and its pairs.
Iron Ore is Australian's largest export, worth $ 118 billion a year according to data from 2021, with China as its main destination. Therefore, the price of steel steel, can be an Australian dollar driver. Often, if the price of steel rises increases, the AUD also climbs, as the combined demand increases for increasing money. The opposite is the case when the price of steel falls falls. Higher prices of steel steel tend to result in a greater likelihood of a positive trading balance for Australia, which is also positive in the AUD.
The trade balance, which is the difference between what a country earns from its exports compared to what it will pay for its imports, is another factor that can influence the value of Australia's dollar. If Australia produces highly sought -out exports, then its money will get value from excessive demand created from foreign consumers who seek to buy its exports compared to what it has spent buying imports. Therefore, a positive balance on the net trade strengthens the AUD, with the opposite effect if the trade balance is negative.
