Australian Dollar Gains as Greenback Weakens
The Australian dollar climbed above $0.648 on Wednesday, marking its second consecutive session of gains, as the greenback weakened following softer-than-expected US inflation data.
The move was further supported by improving sentiment around global trade after the US and China agreed to lower tariffs for a 90-day period, easing fears of prolonged economic strain and helping lift commodity prices.
Given Australia’s heavy export reliance on China, particularly in raw materials, the local currency remains highly sensitive to US-China trade dynamics. On the domestic front, data showed Australian wage growth exceeded expectations in the first quarter, while home loan approvals declined, offering a mixed picture of the economic backdrop.
Looking ahead, the Reserve Bank of Australia is widely expected to cut interest rates by 25 basis points at its meeting next week, as it continues to support growth amid global uncertainties.
Source: Trading Economics
