The Australian dollar fights in the midst of tariff tensions but shows signs of a cautious recovery

• The AUD/USD fell 0.80% to 0.6245 on Tuesday in the middle of a feeling of risk aversion.
• The Australian dollar extended its loss streak per sixth consecutive session while investors reacted to new US tariff measures.
• The decision of the US president, Trump, to impose tariffs on imports from China, one of Australia’s main commercial partners, intensified the fears of a commercial war.

The Australian dollar (AUD) extends its loss streak against the US dollar (USD) on Monday while the torque proves a critical support about 0.6250. In the midst of growing concerns for the commercial war caused by the last tariff policy of the president of the United States, Donald Trump, about Chinese imports, the AU is under pressure despite some recovery attempts.

Daily market movements: markets evaluate new US tariffs.

• Investor attention changed dramatically after President Trump announced a 25% tariff on Canadian imports and a 10% tariff on Chinese products, actions that have increased concerns about inflation and have generated speculation about the possible Federal Reserve response.
• A 25% planned tariff on Mexican imports was temporarily postponed after the Mexican authorities agreed to reinforce border security deploying 10,000 troops on the border, a measure aimed at reducing drug smuggling.
• Canada said he would take rapid retaliation measures, while China promised to challenge tariffs through international commercial organizations.
• The manufacturing PMI of the January ISM exceeded the forecasts, pointing out a continuous strength in the US private sector and reinforcing the attractiveness of a safe refuge of the US dollar despite the previous weakness.

Aud/USD Technical Perspective: Sellers push to conquer the 0.6200 level

The Aud/USD torque has been quoting within a narrow range lately. On Friday, he achieved a modest recovery, rising to 0.6215. The relative force index (RSI) is currently 47, indicating that, although the impulse is not completely restored, the market remains in a negative and cautious zone. The histogram of the convergence/divergence indicator of mobile socks (MACD) shows ascending green bars, which suggests that the upward elements are gradually emerging despite the general indecision.

If buyers can push the price above 0.6300, it could point out a more definitive recovery. However, greater weakness would lead to additional pressure on the decline if the support in 0.6200 is not maintained.