- The AUD/USD goes back to about 0.6480 from a maximum of more than six months of 0.6545, since investors lack details about the commercial agreement between the US and China.
- The US president Trump says that China agrees to supply rare and magnets.
- USA prepares to send letters to its commercial partners indicating tariff rates and trade agreement.
The Aud/USD pair falls to about 0.6480 during the European negotiation hours on Thursday, after the corrective movement from a maximum of more than six months of 0.6545 registered the previous day. The Australian torque weakens as the Australian dollar (aud) does not yield as its peers, while investors doubt that the commercial truce between the United States (USA) and China lasts a long time.
Australian dollar Price today
The lower table shows the percentage of change of the Australian dollar (AUD) compared to the main currencies today. Australian dollar was the weakest currency against the Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.51% | -0.14% | -0.53% | -0.10% | 0.02% | -0.09% | -0.72% | |
| EUR | 0.51% | 0.37% | -0.03% | 0.41% | 0.51% | 0.43% | -0.19% | |
| GBP | 0.14% | -0.37% | -0.43% | 0.04% | 0.13% | 0.04% | -0.58% | |
| JPY | 0.53% | 0.03% | 0.43% | 0.43% | 0.53% | 0.40% | -0.18% | |
| CAD | 0.10% | -0.41% | -0.04% | -0.43% | 0.12% | -0.01% | -0.62% | |
| Aud | -0.02% | -0.51% | -0.13% | -0.53% | -0.12% | -0.09% | -0.70% | |
| NZD | 0.09% | -0.43% | -0.04% | -0.40% | 0.00% | 0.09% | -0.62% | |
| CHF | 0.72% | 0.19% | 0.58% | 0.18% | 0.62% | 0.70% | 0.62% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Australian dollar of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the Aud (base)/USD (quotation).
On Wednesday, US President Donald Trump declared in a publication in Truth. Social that China has agreed to supply rare earth and magnets, but did not provide concrete details about what Beijing will obtain in return.
The complete magnets, and any rare land necessary, will be supplied, in advance, by China. Likewise, we will provide China what was agreed, including Chinese students who use our universities (which has always been good for me!), “Trump wrote. He also added,” we are obtaining a total of 55% of tariffs, China is getting 10%. The relationship is excellent!
“While President Trump indicated favorable news that tariffs on Chinese imports would increase from 30% to 55% and that Chinese exports of rare earths could be resumed, there are little news about what China obtains in return. I doubt that this is a unilateral agreement and, therefore, the caution of the market seen during the night,” said the Etera Investment Management analysts.
Uncertainty among market participants about Commercial agreement between the US and China weighs on the Australian dollar (Aud), since the Australian economy depends largely on its exports to Beijing.
Although investors have supported the US dollar (USD) against the AU, it does not yield as most of its peers amid the uncertainty that surrounds the US tariff policy on Wednesday, President Trump declared that Washington is prepared to send a final commercial agreement, including tariff fees, to those commercial partners of which Washington has not received any proposal or those who have not received any proposal or those who have not received any proposal or those who have not received any proposal or those who have not received any proposal. They are not negotiating in good faith.
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for the US dollar.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
