Australian Dollar edges lower as US Dollar appreciates due to easing global trade tensions
The Australian Dollar (AUD) is edging lower on Tuesday after registering more than 0.50% gains against the US Dollar (USD) in the previous session. The AUD/USD pair depreciates as the US Dollar appreciates amid easing global trade tensions.
US President Donald Trump signaled openness to reducing Chinese tariffs, while Beijing exempted certain US goods from its 125% levies. This move has fueled hopes that the prolonged trade war between the world's two largest economies might be drawing to a close. Chinese Foreign Minister Wang Yi said on Tuesday that making concessions and retreating would only embolden the bully, emphasizing that dialogue is key to resolving differences.
President Trump said that there has been progress, and he has talked with China’s President Xi Jinping. However, a Chinese embassy spokesperson on Friday firmly denied any current negotiations with the US, stating, "China and the US are not having any consultation or negotiation on tariffs." The spokesperson urged Washington to "stop creating confusion."
Traders are now turning their attention to Australia’s upcoming inflation report, set for release on Wednesday, which could influence expectations for Reserve Bank of Australia policy. The RBA is widely expected to implement another 25-basis-point rate cut in May as policymakers prepare for potential fallout from the newly imposed US tariffs.
Source: Fxstreet
