- The Australian dollar was strengthened after Prime Minister Anthony Albanese assured a second three -year term in the 2025 federal elections.
- The PMI composed of Australian’s Judo Bank stood at 51.0 for April, marking the seventh consecutive month of expansion.
- President Trump confirmed that he has no intention of replacing the president of the Fed, Powell, before his term ends in May 2026.
The Australian dollar (AUD) is extending its profits against the US dollar (USD) for the second consecutive session on Monday. The Aud/USD torque is going up after Australian Prime Minister Anthony Albanese assured a second three -year term in the 2025 federal elections, achieving significant profits in the results of Saturday.
The leader of the Labor Party, Albanese, has claimed a majority in Parliament, with more than 45% of the votes counted. His re-election marks the first time in decades that a leader has won consecutive mandates, defeating the opposition leader, Peter Dutton, of the liberal-national coalition of center-right.
Economic data also supported the AU, with the Purchase Managers Index (PMI) composed of Australian Judo Bank by publishing a 51.0 reading in April. This indicates a continuous expansion for seven consecutive months, although the rhythm slowed from 51.6 in March. The PMI of services also stood at 51.0, marking fifteen consecutive growth.
In external developments, the China Ministry of Commerce announced Friday that Beijing is considering an US offer to resume commercial conversations. This follows recent comments from US President Donald Trump, who said that the negotiations were already ongoing. However, Trump added that he has no plans to speak with Chinese President Xi Jinping this week. Any sign of voltage increase between the US and China could negatively impact the AU, given the strong commercial ties of Australia with China.
Meanwhile, US companies planning to transfer China’s production to national facilities may need to reassess, after Trump’s latest comments on tariffs. Speaking during the weekend, Trump recognized the potential impact of high tariffs: “At some point, I will reduce them, because otherwise you could never do business with them, and they want to do business a lot.”
The Australian dollar can be seen while the US dollar fights before the ISM services PMI
- The American dollar index (DXY), which tracks the USD in front of a basket of six main currencies, is losing ground for the second consecutive day, quoting about 99.80 at the time of writing. Later in the day, the operators will be attentive to the PMI of services of the US ISM to obtain more address.
- President Trump has confirmed that he will not seek to replace the president of the Federal Reserve, Jerome Powell, before he finished his mandate in May 2026. Although Trump criticized Powell, calling him “a rigid total”, he maintained that interest rates should eventually be reduced.
- In other policy movements, Trump announced plans to instruct the US trade representative and the Department of Commerce to initiate the process of imposing a 100% tariff on the films produced abroad.
- The US Non -Agricultural Payroll (NFP) report for April showed a stronger increase than expected of 177,000 jobs, after a revised gain of 185,000 in March. This exceeded the market forecast of 130,000. The unemployment rate remained unchanged by 4.2%, while the average earnings per hour increased 3.8% year -on -year, matching the figure of the previous month.
- The US Treasury Secretary, Janet Yellen, warned that Trump’s tariffs could have a “tremendously adverse” impact on the US economy. The Secretary of the Treasury, Scott Besent, said that the inverted yield curve, with the yields two years below the federal funds rate, supports the case for feat cuts by the Federal Reserve.
- The Australia Statistics Office on Thursday reported a commercial surplus of 6.9 billion AUs for March, significantly exceeding 3.13 billion AUs and the February revised figure of 2.85 billion AUD (decrease in 2.97 billion AU). The strong surplus was driven by a 7.6% increase in exports and a 2.2% decrease in imports for the month.
- Australian retail sales on Friday – a key indicator of consumer spending – they contributed to 0.3% month by month in March, compared to an increase of 0.8% in February (reviewed from 0.2%), according to data published on Friday by the Australian Statistics Office (ABS). However, the figure did not meet market expectations, which had predicted a 0.4%gain.
- The Australian treasurer, Jim Chalmers, said the markets still anticipate more cuts in interest rates. “The market expects more cuts in interest rates after inflation figures,” he said, adding that “there is nothing in these numbers that substantially alter market expectations.”
- Inflationary pressures in Australia in early 2025 have weakened the expectations of greater monetary relief by the Bank of the Australian Reserve (RBA). However, markets anticipate a 25 basic points cut in May, since policies responsible are prepared for possible economic repercussions of recently introduced US tariffs.
- According to Bloomberg, China is considering resuming commercial conversations with the US. The Chinese Ministry of Commerce said Washington has contacted to express interest in resuming negotiations. However, China is carrying out an internal evaluation and maintains that the US should correct its actions related to tariffs, which it considers as the unilateral trigger for the ongoing commercial dispute.
The Australian dollar rises to 0.6500 near top five months
The aud/USD is quoting around 0.6460 on Thursday, maintaining a bullish bias in the daily chart. The pair continues to remain above the nine -day exponential (EMA) mobile average, while the 14 -day relative force (RSI) index remains comfortably above 50, which suggests a sustained bullish impulse.
On the positive side, the aud/USD torque could approach to the maximum of five months at 0.6515, followed by the psychological level of 0.6600.
The Aud/USD torque can find initial support in the nine -day EMA at 0.6408, followed by the 50 -day EMA at 0.6326. A rupture below these levels could weaken the upward perspective and could expose to 0.5914, the lowest level since March 2020.
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 strongest currency against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.04% | -0.22% | -0.33% | 0.03% | -0.18% | -0.46% | -0.39% | |
| EUR | 0.04% | 0.10% | -0.03% | 0.34% | 0.14% | -0.15% | -0.08% | |
| GBP | 0.22% | -0.10% | -0.35% | 0.24% | 0.04% | -0.25% | -0.18% | |
| JPY | 0.33% | 0.03% | 0.35% | 0.36% | 0.17% | -0.05% | 0.05% | |
| CAD | -0.03% | -0.34% | -0.24% | -0.36% | -0.50% | -0.49% | -0.42% | |
| Aud | 0.18% | -0.14% | -0.04% | -0.17% | 0.50% | -0.29% | -0.22% | |
| NZD | 0.46% | 0.15% | 0.25% | 0.05% | 0.49% | 0.29% | 0.06% | |
| CHF | 0.39% | 0.08% | 0.18% | -0.05% | 0.42% | 0.22% | -0.06% |
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.
