- The AUD/USD is negotiated near the region of 0.6280 during the American session on Friday, extending the rebound this week.
- The feeling data in the US are further deteriorated as tariff risks weigh on the flexibility of the Fed and inflation expectations.
- The key resistance is observed about 0.6240-0.6260, while the decline is cushioned by the support in 0.6180.
The Australian dollar (AUD) is strengthening on Friday, with the torque moving near the area of ​​0.6280 during the American session. The bullish tone for Aussie arises as the US dollar (USD) continues to weaken in general, dragged by lower economic data than expected and the growing concern of investors about inflation and commercial policy. Although the momentum is improving cautiously, the broader trend remains technically bassist, with resistance areas limiting the additional increase for now.
Daily summary of market movements: the US dollar falls through consumer pessimism and tariff repercussions
- The US dollar index (DXY) continues to weaken, sliding towards the 100 -year area and marking new three years during Friday’s trade.
- The feeling survey of the University of Michigan in April did not meet expectations, while the figures of the weak PPI revived concerns about disinflation.
- Federal Reserve Policies (Fed) remain cautious, warning that, although underlying inflation expectations remain stable, prices pressures promoted by tariffs can persist more time than anticipated.
- President Trump reiterated his confidence in reaching an agreement with China, although tariffs remain high: 145% in Chinese imports and 10% in general for other nations.
- Fed, Musalem and Williams officials said that a possible change in long -term inflation expectations could limit Fed policy options in the next quarters.
Technical analysis
The AUD/USD extends its recovery for third consecutive session, approaching the upper range of its daily movement, with the action of the price contained between 0.6180 and 0.6287. Despite today’s upward thrust, the general technical structure is still fragile.
The Relative Force Index (RSI) is around 50, neutral but inclined to rise as it rises constantly. Meanwhile, the MACD still indicates weakness, printing a new red bar, indicating that the vendors have not completely left. The Oltimate Oscillator and Stochastic readings remain neutral, suggesting that the trend lacks a strong conviction.
From a trend monitoring point of view, all the main mobile socks continue to point down. Simple mobile socks (SMA) of 20 days, 100 days and 200 days, together with the 30 -day EMA, confirm the persistent bearish pressure. Key levels of resistance are observed at 0.6244, 0.6261 and 0.6262, while the support is seen at 0.6236, 0.6215 and 0.6180. A rupture above the 0.6260 area could open space for a stronger bullish correction, although technical bias remains cautious for now.
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.
