- The Aud/USD rises to about 0.6430 while the US dollar faces pressure despite the relaxation of commercial tensions between the US and China.
- Investors expect US NFP data, which will influence the monetary policy perspectives of the Federal Reserve (FED).
- The Australian pair operates laterally around 0.6400 for almost two weeks.
The Aud/USD pair jumps at about 0.6430 on Friday. The Australian pair is strengthened while the US dollar (USD) corrects sharply, even when the hopes of a decalsed in the commercial war between the United States (USA) and China have improved.
The trust of investors in which commercial tensions between the two greatest powers in the world have increased after the comments of the Chinese Ministry of Commerce, which indicated that Beijing is open to commercial conversations but wants the USA.
The relaxation of commercial tensions between the US and China is favorable for the Australian dollar (Aud), since Australia is Beijing’s main business partner.
The US dollar index (DXY), which tracks the value of the dollar against six main currencies, abruptly falls to about 99.75.
Meanwhile, investors expect the US non -agricultural payroll data (NFP) for April, which will be published at 12:30 GMT. The US NFP is expected to show that the economy added 130,000 new workers, significantly less than the March 228,000 reading.
The AUD/USD is consolidated in a narrow range of 0.6340-0.6450 for almost two weeks. The torque ranges near the 200 -day exponential mobile average (EMA) around 0.6407, indicating a lateral trend.
The 14 -day relative force index (RSI) ranges around 60.00. A new bullish impulse would arise if the RSI breaks above that level.
More increases would appear towards the round level resistance of 0.6500 and the maximum of November 25, 0.6550 if the torque breaks above the maximum of December 5, 0.6456.
On the other hand, a downward movement below the minimum of March 4, 0.6187 towards the minimum of February 0.6087, followed by the psychological support of 0.6000.
Aud/USD Daily Graph
Commercial War between the US and China Faqs
In general terms, “Trade War” is a commercial war, an economic conflict between two or more countries due to the extreme protectionism of one of the parties. It implies the creation of commercial barriers, such as tariffs, which are in counterbarreras, increasing import costs and, therefore, the cost of life.
An economic conflict between the United States (USA) and China began in early 2018, when President Donald Trump established commercial barriers against China, claiming unfair commercial practices and theft of intellectual property by the Asian giant. China took retaliation measures, imposing tariffs on multiple American products, such as cars and soybeans. The tensions climbed until the two countries signed the Phase one trade agreement between the US and China in January 2020. The agreement required structural reforms and other changes in China’s economic and commercial regime and intended to restore stability and confidence between the two nations. Coronavirus pandemia diverted the attention of the conflict. However, it is worth mentioning that President Joe Biden, who took office after Trump, kept the tariffs and even added some additional encumbrances.
Donald Trump’s return to the White House as the 47th US president has unleashed a new wave of tensions between the two countries. During the 2024 election campaign, Trump promised to impose 60% tariff particularly in investment, and directly feeding the inflation of the consumer price index.
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.
