The AUD/USD expands the losses below 0.6500 before the search for investor refuge

  • The Australian dollar accelerates its fall with Trump tariffs crushing the appetite for risk.
  • The fears of a global commercial disruption project a shadow on the economic perspectives of Australia and weigh strongly on the Australian dollar.
  • The RBA is expected to cut the rates and could transmit a dovish message on Tuesday.

Risk aversion is promoting the markets on Monday, since the markets are prepared for the reintroduction of the “April’s day of liberation day” and the Australian dollar collapses before a mixture of fears for greater levies to exports to the US and a general disruption of global trade.

Australia’s economy depends largely on international trade, and uncertainty about global commercial perspectives is harming confidence in its currency. The Aud/USD accelerated its fall today and is losing around 0.9% on its third consecutive day of losses.

Risk sensitive currencies suffer with US tariffs in view

Investors are hurrying towards security on Monday, promoting the recovery of the US dollar while Trump prepares to send letters to some of its commercial partners announcing the levies that will be applied to their products. What are those countries is still clear, since US administration officials promoted imminent agreements with some countries, and there is also the deadline, since the Treasury Secretary, Besent, mentioned a moratorium until August 1.

However, the currency markets are expected to remain promoted by a negative risk feeling in the absence of key data that relieve the mood of investors.

On Tuesday, the Bank of the Australia Reserve is expected to cut its reference interest rate at 25 basic points and it is very likely that it delivers a Dovish message, pointing out the downward risks for the economy due to uncertainty about US tariffs the MONETARY POLICY DECISION on Tuesday will probably not provide any significant impulse to the Australian dollar.

Economic indicator

RBA interest rate decision

He Australian Reserve Bank (RBA) announces your decision on interest rates at the end of your eight meetings scheduled per year. If the RBA adopts a hard line posture on the inflationary perspectives of the economy and uploads interest rates, it is usually bullish for the Australian dollar (Aud). Similarly, if the RBA has a moderate vision of the Australian economy and maintains interest rates without changes, or reduces them, it is considered bassist for the AUD.

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Next publication: Mar Jul 08, 2025 04:30

Frequency: Irregular

Dear: 3.6%

Previous: 3.85%

Fountain: Reserve Bank of Australia

Source: Fx Street

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