- The Australian dollar decreases due to a feeling of attenuated risk amid the growing tensions in the Middle East.
- Israeli military officers said Israel attacked dozens of nuclear sites in Iran.
- The US Production Price Index rose 0.1% intermensual in May, against the expectation of an increase of 0.2%.
The Australian dollar (AUD) decreases against the US dollar (USD) on Friday, with losses greater than 1%. The aud/USD torque is depreciated due to the increasing tensions in the Middle East.
Israel’s Minister of Defense, Israel Katz, warned his country about an attack with missiles and drones after Israel’s preventive attack on Iran. Katz declared a special state of special emergency in the country, according to Axios. Israeli military officers said Israel attacked dozens of sites in Iran, since the Iranian nuclear program is an existential threat to Israel.
Reuters reported that US president Donald Trump expanded steel tariffs from June 23 on the “imported products” products “, including appliances, such as dishwasher, washing machines, refrigerators, etc. Tariffs were initially imposed at 25% in March and then doubled to 50% for most countries. This is the second time the scope of the affected products is extended.
The Australian dollar depreciates while the US dollar advances due to a greater demand for safe refuge
- The dollar index (DXY), which measures the value of the US dollar compared to six main currencies, is recovering losses and lifting higher around 98.10 at the time of writing. You will be aware of the feeling of the US Michigan consumer later on Friday.
- The US Production Price Index. This figure was softer than the expectation of an increase of 0.2%. Meanwhile, the underlying IPP, excluding food and energy, increased an intermencing 0.1% in May compared to -0.2% previous (revised of -0.4%), below the consensus of 0.3%.
- President Trump published in Truth Social on Wednesday that the commercial agreement with China is made and added that it is subject to its final approval and that of Chinese President Xi Jinping. “We are obtaining a total of 55%tariffs, China is getting 10%. The relationship is excellent! Thank you for your attention to this matter.”
- China will grant only rare earth export licenses for six months for American manufacturers and motorists, suggesting that China wants to have control over critical minerals such as lever in future negotiations, according to the Wall Street Journal (with restricted access).
- The US Consumer Price Index (CPI) rose 2.4% year -on -year in May, slightly above the previous 2.3%, but below the market expectations of a 2.5% increase. The underlying IPC, which excludes volatile food and energy prices, rose 2.8% year -on -year in May, compared to the 2.9% consensus.
- On Wednesday, President Trump declared that he would like to extend the period of trade negotiations, but does not believe it is necessary. Trump added that he will establish unilateral tariff rates in two weeks.
- The Court of Appeals of the Federal Circuit extended on Tuesday a previous temporary relief for the government while pressing a challenge to a ruling of a lower court last month that blocked tariffs. The Federal Court of Appeals has ruled that President Trump’s broad tariffs can continue in force while legal appeals continue, according to Bloomberg.
- The Commercial Balance of China (CNY) reached CNY743.56 billion in May, expanding from the previous CNY689.99 billion surplus. Meanwhile, exports increased 6.3% year -on -year compared to 9.3% in April. The imports of the country fell 2.1% year -on -year in the same period, from an increase of 0.8% recorded above.
- The Australia trade balance registered a surplus of 5,413 million intermensual dollars in April, below the expected 6,100 million and 6,892 million (revised of 6.9 billion) in the previous reading. Exports fell an intermencing 2.4% in April, compared to an increase of 7.2% previous (7.6% reviewed). Meanwhile, imports increased 1.1%, compared to a 2.4%drop (revised -2.2%) observed in March. The Caixin Services PMI of China rose to 51.1 in May as expected, from 50.7 in April.
The Australian dollar falls towards 0.6450 near the 50 -day Ema
The Aud/USD pair quotes around 0.6460 on Friday. The technical analysis of the daily chart indicates a weakening of the bullish bias, since the torque has broken below the lower limit of the ascending channel. In addition, the pair that moves below the nine -day exponential (EMA) mobile average suggests that the impulse of the short -term price is weakening. However, the 14 -day relative force index (RSI) is still slightly above the 50th brand, indicating that a bullish bias is at stake.
At the bottom, the AUD/USD torque can further try the 50 -day EMA at 0.6423.
The immediate barrier seems to be in the nine -day EMA of 0.6495, followed by the maximum of seven months of 0.6538, which was reached on June 5. Additional advances could lead to the region to explore the region about eight months at 0.6687, followed by the upper limit of the upward channel around 0.6730.
AUD/USD: Daily graphic
Australian dollar Price today
The lower table shows the percentage of change of the Australian dollar (AUD) compared to the main currencies today. Australian dollar was the weakest currency against the Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.28% | 0.29% | -0.26% | 0.20% | 0.79% | 0.77% | -0.41% | |
| EUR | -0.28% | 0.06% | -0.48% | -0.01% | 0.60% | 0.48% | -0.69% | |
| GBP | -0.29% | -0.06% | -0.58% | -0.15% | 0.46% | 0.40% | -0.73% | |
| JPY | 0.26% | 0.48% | 0.58% | 0.48% | 1.05% | 1.02% | -0.16% | |
| CAD | -0.20% | 0.01% | 0.15% | -0.48% | 0.57% | 0.59% | -0.58% | |
| Aud | -0.79% | -0.60% | -0.46% | -1.05% | -0.57% | -0.04% | -1.19% | |
| NZD | -0.77% | -0.48% | -0.40% | -1.02% | -0.59% | 0.04% | -1.14% | |
| CHF | 0.41% | 0.69% | 0.73% | 0.16% | 0.58% | 1.19% | 1.14% |
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).
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.
