AUD Weakens: Trump, China, and RBA Are Heavy Burdens
The Australian Dollar (AUD) weakened against the US Dollar (USD) on Monday (07/07), continuing its downward trend for the third consecutive day, triggered by increasing global risk aversion and concerns about new tariffs from the US. Market sentiment worsened after President Donald Trump threatened to impose an additional 10% tariff on countries that support BRICS, and indicated that 12 to 15 tariff letters would be sent this week. These trade tensions have strengthened the US Dollar as a safe haven asset, pressuring the AUD/USD pair deeper. Meanwhile, ANZ job advertisement data in Australia which rose 1.8% was not enough to support the AUD, because the market focus remains on external uncertainty and global tariff risks.
Domestically, market players are now waiting for the results of the Reserve Bank of Australia (RBA) monetary policy meeting on Tuesday, which is expected to maintain interest rates but provide signals of further easing in the future. Australia’s reliance on trade with China is also a concern, with data showing a large shift in Chinese exports to avoid US tariffs. This shift in trade flows could impact demand for Australian commodities. Against this backdrop, the near-term outlook for the AUD remains vulnerable to external pressures, particularly if the US dollar strengthens further or if the RBA signals a stronger dovish tone than markets expect.
Source: (ayu-newsmaker)
