- Aud/USD extends on its negative side to about 0.6340 in the early Asian session on Thursday.
- Trump’s tariff threats raise the US dollar against Australian.
- Investors prepare for Australian recruitment data in January on Thursday.
The AUD/USD pair extends to a decrease to about 0.6340 during the early Asian session on Thursday. The threats of the new US tariff, Donald Trump, continue to support the US dollar (USD) and install it to the husband.
Greenback is supported by concerns about the escalation of commercial tensions. Last week, US President Donald Trump ordered his administration to consider imposing a mutual tariff on many commercial partners. Late on Tuesday, Trump said he would likely impose a tariff of about 25 % on foreign cars, while semiconductor chips are to face higher duties.
“So far, we can agree that Trump is doing exactly what he said.” Research in Montreal.
Minutes of the FOMC meeting issued on Wednesday indicates that feeding Political makers believe it can take a good time to evaluate Expectations For economic activity, the labor market and inflation. Federal reserve officials have agreed that inflation should show clear signs of slowdown before any other price cuts.
The Australian Reserve Bank (RBA) decided to reduce its official cash price (OCR) by 25 basis points (BPS) to 4.10 % on Tuesday, which is to reduce the first rate in four years. The central bank has warned that it was too early to announce victory over inflation and was cautious about the possibility of more mitigation. Investors are awaiting the issuance of Australian recruitment data in January for Fresh Amputus, which is scheduled to be known later on Thursday.
Questions and answers in Australian dollars
One of the most important factors for the Australian dollar (AUD) is the level of interest rates set by the Australian Reserve Bank (RBA). Since Australia is a resource -rich country, the other main engine is the largest export price, iron ore. The health of the Chinese economy, and the largest commercial partner, is a factor, as well as inflation in Australia, the rate of growth and trade is a balance. Market morale-whether investors are eating more risky assets (risk) or searching for safe materials (risk)-is also a worker, with positive risks for AUD.
The Australian Reserve Bank (RBA) affects the Australian dollar (AUD) by determining the level of interest rates that Australian banks can persuade each other. This affects the level of interest rates in the economy as a whole. The main goal of RBA is to maintain a stable inflation rate of 2-3 % by setting interest rates up or down. Relatively high interest rates are supported compared to other main central banks, and relatively low vice versa. RBA can also use and tighten quantitative dilution to influence credit conditions, with previous AUD negative and positive to AUD.
China is the largest commercial partner in Australia, so the health of the Chinese economy is a major impact on the value of the Australian dollar (AUD). When the Chinese economy does a good job, it buys more raw materials, commodities and services from Australia, raising the demand for AUD, and raising its value. The opposite is the case when the Chinese economy does not grow at the speed available. Positive or negative surprises in Chinese growth data, therefore, they often have a direct impact on the Australian dollar and its wives.
Iron Ore is the largest export in Australia, as it represents 118 billion dollars annually according to data from 2021, with China as its main destination. Therefore, the price of iron ore can be an engine for the Australian dollar. In general, if the price of iron ore rises, the AUD also rises, as the total demand for the currency increases. The opposite is the case if the price of iron ore decreases. Iron ore prices also tend to increase the possibility of a positive commercial balance for Australia, which is also positive for AUD.
The commercial balance, which is the difference between what a country gains from its exports in exchange for what it pays to its imports is another factor that can affect the value of the Australian dollar. If Australia produces very required after exports, its currency will obtain a value of the excess demand created from foreign buyers who seek to buy its exports in exchange for what it spends to buy imports. Therefore, the positive net trade balance enhances AUD, with the opposite effect if the trade balance is negative.
2025-02-20 00:11:21