Australian Dollar Holds Losses As Trading Remains Silent On Good Friday
The Australian Dollar (AUD) remains subdued on Friday (18/4) following a seven-day winning streak. However, the AUD/USD pair may regain its ground as the US Dollar (USD) weakens amid growing concerns over the economic impact of tariffs on the United States (US). Market participants are closely monitoring developments in US trade negotiations, although trading activity is expected to be subdued due to the Good Friday holiday.
On late Thursday, US President Donald Trump stated that China had made multiple overtures and added, "I don't want to go higher on China tariffs. If China tariffs go higher, people won't buy." Trump expressed optimism that a trade agreement with China could be reached within three to four weeks.
The AUD received a boost after President Trump announced exemptions for key technology products from the newly proposed “reciprocal” tariffs. These exemptions—covering items such as smartphones, computers, semiconductors, solar cells, and flat-panel displays—favor goods predominantly produced in China, Australia's largest trading partner and a significant consumer of its commodity exports.
Reserve Bank of Australia's (RBA) March 31–April 1 Meeting Minutes indicated ongoing uncertainty around the timing of the next interest rate adjustment. Although the Board considered the May meeting a suitable point to review monetary policy, it stressed that no decisions had been made in advance. The Board also pointed to both upside and downside risks facing Australia's economy and inflation trajectory.
Source: FXStreet
