- The Australian dollar depreciates for the second consecutive day in the midst of a growing risk aversion.
- Global commercial uncertainty grows with US business partners.
- The AUD/USD approaches the neck line of a double roof pattern in the area of 0.6535-0.6545.
The Australian dollar is quoting down for the second consecutive day, retreating from the maximum of the year, at 0.6590, with risk -sensitive assets pressed by the growing uncertainty about tariffs as the deadline of July 9 is approaching.
The president of the United States, Donald Trump, said Thursday that he will begin sending letters to the partners informing them about the tariffs that will be applied to their products. This news put investors on alert on a serious interruption of global trade and projects a shadow on net exporting countries, such as Australia.
The torque had begun to go down a little earlier, since a report of non -agricultural payrolls from the United States.
Technical analysis: A double roof at 0.6590 could anticipate a deeper correction
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From a technical perspective, the torque is consolidating profits after the upward movement of last week, but the double roof in 0.6590, along with a maximum lower on Thursday and the 4 -hour relative force index crossing below level 50, suggests that bassists are taking control
The pair should break the area of 0.6535-0.6545 (minimum of July 2 and 3) to activate the DT pattern and confirm a deeper correction. The measured objective of the figure is the confluence of the fibonacci setback of 38.2% of the rally from June 23 to July 1 and the minimum of June 27, at 0.6510.
On the positive side, the torque should break the mentioned maximum of July 1 and 2, in 0.6590, to resume the wider upward trend and focus its attention on the Fibonacci extensions of 127.2% and 161.8% of the ascending movement from June 27 to July 1, in 0.6610 and 0.6640, respectively.
Tariffs – Frequently Questions
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
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.
