- The Aud/USD pair operates around 0.6400, rising 0.26% in the day.
- The US GDP data does not meet expectations, showing a 0.3% contraction in Q1 2025.
- Market expectations for a Fed feat cut in June increase as weak data weigh on the USD.
- Investors remain cautious before the key US data publications, including NFP and GDP for Q1 2025.
The Aud/USD torque saw a slight increase as investors weighs the weak economic data in the United States (USA), including a contraction in the GDP of Q1. The market now expects possible rates cuts by the Federal Reserve (FED), which has pressed the US dollar (USD). Despite commercial tensions and the incertive uncertainty, the Australian dollar (AUD) served well, with the pair negotiating near the level of 0.6400. The next key approach will be the publication of non -agricultural payroll data and US GDP. Later this week.
Daily summary of the market movements: weak US GDP, concerns persist on tariffs
- The aud/USD torque rises after trying the resistance about 0.6417, driven by a weakest US GDP than expected.
- President Donald Trump hints commercial conversations with Canada, but uncertainty persists on negotiations between the US and China.
- China’s weak manufacturing PMI adds to the feeling of risk aversion, impacting the prices of raw materials such as copper.
- The US dollar index (DXY) remains flat at 99.30, while operators expect the publication of key economic data.
- Personal consumption data show modest growth, but the general economic perspective remains uncertain.
- The US labor market shows signs of deceleration, with the employment data of ADP that do not meet expectations.
- The operators are closely observing the PCE inflation data, with the markets assessing possible rate cuts.
- President Trump’s comments on tariffs and commercial policy keep investors in suspense, impacting USD.
- The Djia falls 0.51% while the contraction of the GDP of the Q1 weighs on the feeling of the market.
- The Bank of the Australian Reserve (RBA) remains cautious about inflation, with softer IPC data by increasing the expectations of rate cuts.
- Global uncertainty around commercial policies maintains market volatility, particularly in the currency market.
Technical Analysis: AUD/USD maintains upward perspective despite the weakness of the US dollar
The aud/USD torque is showing a bullish signal, operating around 0.6400, rising 0.26% in the day. The pair is currently in an average range between 0.6356 and 0.6417. The relative force index (RSI) is neutral in 56.96, while the MACD indicates a purchase signal. The amazing oscillator is neutral at 0.0096. The short -term mobile socks, including the 10 -day SMA at 0.6391 and the 100 -day SMA at 0.6281, support the upward perspective. However, the 200 -day SMA at 0.6463 suggests a long -term sales signal. Support levels are at 0.6391, 0.6377 and 0.6342, while resistance levels are located at 0.6409, 0.6411 and 0.6463.
Faqs Australian dollar
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 country rich in resources, another key factor is the price of its greatest export, iron mineral. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and commercial balance. The feeling of the market, that is, if investors are committed to more risky assets (Risk-on) or seek safe shelters (Risk-Off), it is also a factor, being the positive risk-on for the AUD.
The Australian Reserve Bank (RBA) influences the Australian dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of the interest rates of the economy as a whole. The main objective of the RBA is to maintain a stable inflation rate of 2% -3% by adjusting the interest rates or the low. Relatively high interest rates compared to other large central banks support the AU, and the opposite for the relatively low. The RBA can also use relaxation and quantitative hardening to influence credit conditions, being the first refusal for the AU and the second positive for the AUD.
China is Australia’s largest commercial partner, so the health of the Chinese economy greatly influences the value of the Australian dollar (Aud). When the Chinese economy goes well, it buys more raw materials, goods and services in Australia, which increases the demand of the AU and makes its value upload. The opposite occurs when the Chinese economy does not grow as fast as expected. Therefore, positive or negative surprises in Chinese growth data usually have a direct impact on the Australian dollar.
Iron mineral is the largest export in Australia, with 118,000 million dollars a year according to data from 2021, China being its main destination. The price of iron ore, therefore, can be a driver of the Australian dollar. Usually, if the price of iron ore rises, the Aud also does, since the aggregate demand of the currency increases. The opposite occurs when the price of low iron ore. The highest prices of the iron mineral also tend to lead to a greater probability of a positive commercial balance for Australia, which is also positive for the AUD.
The commercial balance, which is the difference between what a country earns with its exports and what it pays for its imports, is another factor that can influence the value of the Australian dollar. If Australia produces highly requested exports, its currency will gain value exclusively for the excess demand created by foreign buyers who wish to acquire their exports to what you spend on buying imports. Therefore, a positive net trade balance strengthens the AUD, with the opposite effect if the commercial balance is negative.
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.
