- The Aud/USD weakens as the US dollar wins after the agreement between the US and China to reduce tariffs.
- The US and China reduced tariffs by 115% for a period of 90 days.
- This week, investors will focus on Australian employment data in April.
The aud/usd torque Returns the initial profits and becomes negative during negotiation hours in North America on Monday. The Australian pair slides about 0.6390 while the US dollar (USD) shoots after USA (USA) and China agree to reverse import tariffs higher taxes after the announcement of reciprocal tariffs by President Donald Trump on the so -called Liberation Day on April 2.
The US dollar index (DXY), which tracks the value of the dollar against six main currencies, yields some of its initial profits after fighting to extend its rise above 101.95. Even so, there is more than 1% above its closing on Friday around 101.50, at the time of writing.
At a scheduled conference, the US and China announced a 90 -day break in the ongoing tariff war. Both nations reduced tariffs by 115%. However, the 20% tax on fentanil in import tariffs to China remains intact. However, Washington indicated that constructive discussions are being carried out to solve the same.
The temporal truce between the US and China is expected to force market experts to review their perspective global economy. This has led to a strong rebound in actions worldwide. The S&P 500 has opened with robust profits of around 2.6%, indicating a significant increase in appetite due to the risk of investors.
Considering the fortress of the US dollar, the fall in the Australian pair is lower, since the Australian dollar (AUD) has also attracted offers for the descaled in the commercial war between the US and China. Since the Australian economy depends largely on its exports to China, the Australian dollar is surpassing other peers.
Australian dollar Price today
The lower table shows the percentage of change of the Australian dollar (AUD) compared to the main currencies today. The Australian dollar was the strongest currency in front of the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 1.19% | 0.81% | 1.27% | 0.65% | 0.44% | 0.77% | 0.93% | |
| EUR | -1.19% | -0.25% | 0.61% | -0.05% | -0.13% | 0.06% | 0.22% | |
| GBP | -0.81% | 0.25% | 1.04% | 0.20% | 0.13% | 0.23% | 0.47% | |
| JPY | -1.27% | -0.61% | -1.04% | -0.62% | -1.44% | -1.35% | -0.57% | |
| CAD | -0.65% | 0.05% | -0.20% | 0.62% | 0.06% | 0.11% | 0.27% | |
| Aud | -0.44% | 0.13% | -0.13% | 1.44% | -0.06% | 0.09% | 0.32% | |
| NZD | -0.77% | -0.06% | -0.23% | 1.35% | -0.11% | -0.09% | 0.13% | |
| CHF | -0.93% | -0.22% | -0.47% | 0.57% | -0.27% | -0.32% | -0.13% |
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).
At the national level, the AU will be influenced by April employment data, which will be published on Thursday. Labor market data is expected to show that the unemployment rate remained stable at 4.1%. It is estimated that the Australian economy has added 25,000 new workers, below the 32,200 of March.
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.
