Australian Dollar extends losses following Consumer Inflation Expectations data
The Australian Dollar (AUD) edges lower against the US Dollar (USD) on Thursday, extending its losses for the second consecutive day. However, the AUD/USD pair may appreciate as softer US inflation data have boosted bets of a Federal Reserve (Fed) rate cut in September.
United States (US) President Donald Trump posted on Truth Social, saying that the trade deal with China is done and added that it is subject to his and Chinese President Xi Jinping's final approval.
"We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent! Thank you for your attention to this matter," Trump said on Wednesday. Any economic change in China could impact AUD as China and Australia are close trade partners.
China will grant only six-month rare-earth export licenses for US automakers and manufacturers, which suggests that China wants to have control over critical minerals as leverage in future talks, per the Wall Street Journal (gated).
The risk-sensitive AUD may find challenges as the tensions escalate between Israel and Iran, after the United States advised some Americans to leave the Middle East. President Trump said on Wednesday that the US would not permit Iran to have a nuclear weapon, per Reuters.
Moreover, CBS News senior White House correspondent Jennifer Jacobs reported that US officials have been told that Israel is fully ready to launch an operation into Iran.
Source: FXStreet
