Australian Dollar Strengthens Amid Potential Easing Of Global Trade Tensions
The Australian dollar (AUD) halted a three-day losing streak against the US dollar (USD) on Wednesday (9/4), supported by comments from US President Donald Trump indicating a willingness to negotiate with trading partners. Trump's remarks raised optimism about the potential easing of global trade tensions.
US Treasury Secretary Scott Bessent revealed that nearly 70 countries have contacted the White House to negotiate tariffs. However, market volatility is expected to remain high after Trump threatened to impose an additional 50% tariff on Chinese imports if Beijing does not reduce its duties on US goods.
The AUD remains pressured amid ongoing US-China trade tensions, especially as Australia maintains strong economic ties with China. Beijing has denounced Trump's latest threats as "blackmail" and vowed to protect its interests.
Australia's economic outlook remains fragile, with business and consumer confidence declining. The weak data has reinforced expectations for a more dovish stance from the Reserve Bank of Australia (RBA), with markets now pricing in up to 100 basis points of interest rate cuts this year—starting in May, with further cuts possible in July and August.
Source: FXStreet