Australian Dollar holds losses as US Dollar remains stronger ahead of GDP Annualized
The Australian Dollar (AUD) remains subdued for the fourth successive session on Thursday, following disappointing Private Capital Expenditure data for the first quarter.
The AUD/USD pair extends its losses as the US Dollar (USD) is trading higher after a US federal court blocked US President Donald Trump's "Liberation Day" tariffs from taking effect. A Reuters report showed that a federal trade court ruled Trump didn't have the authority to impose sweeping tariffs on imports from countries that sell more to the US.
The Trump administration has halted some sales of jet engines, semiconductors, and certain chemicals to China. The New York Times cited two familiar sources saying that this action is a response to China’s recent export restrictions on exports of critical minerals to the US. Any change in Chinese markets could impact the Australian Dollar as Australia and China are close trade partners.
The AUD could face challenges as the Reserve Bank of Australia (RBA) is expected to deliver more rate cuts in the upcoming policy meetings. The central bank acknowledged progress in curbing inflation and warned that US-China trade barriers pose downside risks to economic growth.
Governor Michele Bullock stated that the RBA is prepared to take additional action if the economic outlook deteriorates sharply, raising the prospect of future rate cuts.
Source: Fxstreet
