Australian Dollar Weakens As Trump Extends Steel, Aluminium Tariffs
The Australian dollar (AUD) weakened against the US dollar (USD) on Tuesday (11/2) as downward pressure mounted on the AUD/USD pair. The decline followed US President Donald Trump’s decision to extend 25% steel and aluminium tariffs to cover all imports, scuttling a trade deal with key US allies, including Australia. The White House confirmed that all import tax exemptions have been removed and indicated that further action on microchips and vehicles would be considered in the coming weeks.
Australian Westpac Consumer Confidence rose by 0.1% in February, reaching 92.2 from 92.1 in January. Despite the slight increase, consumer confidence remains subject to ongoing concerns over household finances and rising living costs.
Market sentiment is showing growing expectations that the Reserve Bank of Australia (RBA) will cut its 4.35% cash rate at its next meeting in February. Traders now see a 95% chance of a cut to 4.10%, as recent data showed underlying inflation has eased more quickly than the RBA had anticipated. This has prompted several major Australian banks to shift their forecasts for the first rate cut from May to February.
Source: FXStreet
