Australian Dollar Extends Gains Despite Increased Risk Aversion
The Australian Dollar (AUD) extends its gains for the third successive session against the US Dollar (USD) on Friday. However, the upside of the AUD/USD pair could be restrained as the White House confirmed that the cumulative US tariffs on Chinese goods have risen to 145%. The announcement heightened tensions in the ongoing trade dispute between the world’s two largest economies, raising concerns for Australia given its strong trade ties with China.
The AUD found support on Thursday from reports that Australia is preparing to resume trade negotiations with the European Union (EU). Moreover, The Wall Street Journal reported that China also held talks with EU trade chief Maros Sefcovic, expressing interest in strengthening trade, investment, and industrial cooperation with the bloc.
China also raised tariffs on 84% of American imports and added six US firms—including defense and aerospace companies like Shield AI and Sierra Nevada—to its trade blacklist. It also introduced export controls on several American companies, such as American Photonics and BRINC Drones.
Source: FXStreet
