- The Australian dollar remains under pressure in the midst of commercial tensions between the US and China, given the strong economic ties of Australia with China.
- The feeling of the market was mixed after reports suggested that the Trump administration could consider reducing tariffs on Chinese imports.
- China’s Ministry of Finance said that global economic growth continues to face winds against, with commercial and tariff disputes.
The Australian dollar (AUD) lowers against the US dollar (USD) on Friday, going back after the earlier earnings. The fall in The aud/usd torque It is driven by the persistent commercial tensions between the US and China, since Australia’s close commercial relationship makes it particularly sensitive to developments between the two economic giants.
The operators continued following the fluid global commercial panorama. The feeling of the market remained mixed after reports that the Trump administration could reduce tariffs on Chinese imports, depending on the progress of possible conversations with Beijing. China expressed its willingness to participate in discussions, provided that the US stops issuing new threats. However, US Treasury Secretary, Scott Besent, minimized optimism, clarifying that unilateral tariff cuts have been proposed and that formal negotiations have not yet begun.
China’s Ministry of Finance declared Friday that global economic growth is still slow, with tariff and commercial wars that continue to undermine economic and financial stability. The Ministry urged all parties to improve the international economic and financial system through a stronger multilateral cooperation, according to Reuters.
On Thursday, Westpac predicted that the Bank of the Australian Reserve (RBA) would reduce the rates of interest in 25 basic points at its next May 20 meeting. The RBA has adopted a data -based approach in the last quarters, which makes it difficult to predict its actions beyond the next meeting with confidence.
The Australian dollar fights while the US dollar can be seen due to possible US trade agreements.
- The American dollar index (DXY), which measures the USD compared to six main currencies, recovers its recent losses from the previous session, quoting about 99.60 at the time of writing. However, the dollar faced winds against after the publication of the data of initial unemployment applications on Thursday.
- The US Department of Labor (DOL) on Thursday that initial applications for unemployment benefits increased for the week ended on April 19. Initial unemployment applications increased to 222,000, slightly above expectations and above the revised figure of the previous week of 216,000. Meanwhile, continuous unemployment requests decreased by 37,000, falling to 1,841 million for the week ending on April 12.
- The preliminary compound PMI of Global S&P for April fell to 51.2 from 53.5, indicating a slowdown in general business activity. Although the manufacturing PMI rose slightly to 50.7, the PMI of services fell dramatically to 51.4 from 54.4, pointing to a weakened demand in the services sector.
- Chris Williamson of S&P Global commented that the impulse of growth is losing strength, while the persistent inflation pressures continue to complicate the federal reserve efforts to find a balance.
- According to the April Beige Book of the Fed, concerns about tariffs have worsened economic perspectives in several regions of the United States (USA). The consumer spending presented a mixed image, while the labor market showed signs of weakening, with many districts informing stable levels of employment or slightly in decline.
- The US Treasury Secretary, Scott Besent, recognized on Wednesday that current tariffs – 145% on Chinese goods and 125% on US assets – are unsustainable and should be reduced to begin a significant dialogue.
- The director of the National Economic Council, Kevin Hasett, the main economic advisor of President Trump, declared that the US trade representative (USTR) has 14 meetings scheduled with foreign trade ministers. Hasset also said that 18 written proposals from these ministers have been received. According to Hasset, China is still open to negotiations.
- The feeling of the market was promoted by the president of the USA, Donald Trump, who assured investors that he has no intention of dismissing the president of the Federal Reserve (Fed), Jerome Powell, helping to relieve concerns about the independence of the Central Bank and the address of politics.
- The White House announced Tuesday that the Trump administration is moving forward in the negotiation of trade agreements aimed at relieving the wide tariffs introduced earlier this month. According to the US press secretary, Karoline Leavitt, 18 countries have already submitted commercial proposals to the US, and President Trump’s commercial team is scheduled to meet this week with representatives of 34 nations to explore possible agreements.
- The Judo Bank manufacturing PMI fell to a minimum of two months of 51.7 in April, compared to 52.1 in March. Although manufacturing production remained in expansion territory, the increase in new orders was modest. Meanwhile, the PMI of services fell slightly to 51.4 from 51.6 in the previous month, and the compound PMI was also reduced to 51.4 from 51.6.
The Australian dollar finds resistance near maximum four months, level 0.6450
The aud/USD torque is around 0.6410 on Friday, with the graphics daily keeping a bullish bias. The pair remains above the nine -day exponential (EMA) mobile average, while the 14 -day relative force (RSI) index remains stable above level 50, indicating a continuous rising impulse.
Up, the immediate resistance is in the recent maximum of four months of 0.6439, established on April 22. A clear rupture above this level could open the door to a rally towards a maximum of five months of 0.6515.
The initial support is found in the nine -day EMA, currently at 0.6365, with a stronger support near the 50 -day EMA at 0.6302. A sustained movement below these levels would weaken the perspective Alcista and could trigger deeper losses, potentially exposing the minimum of March 2025 about 0.5914.
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 US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.38% | 0.28% | 0.26% | 0.08% | 0.17% | 0.21% | 0.51% | |
| EUR | -0.38% | -0.10% | -0.08% | -0.31% | -0.22% | -0.15% | 0.12% | |
| GBP | -0.28% | 0.10% | 0.02% | -0.21% | -0.10% | -0.06% | 0.20% | |
| JPY | -0.26% | 0.08% | -0.02% | -0.20% | -0.13% | -0.10% | 0.19% | |
| CAD | -0.08% | 0.31% | 0.21% | 0.20% | -0.00% | 0.14% | 0.39% | |
| Aud | -0.17% | 0.22% | 0.10% | 0.13% | 0.00% | 0.05% | 0.32% | |
| NZD | -0.21% | 0.15% | 0.06% | 0.10% | -0.14% | -0.05% | 0.25% | |
| CHF | -0.51% | -0.12% | -0.20% | -0.19% | -0.39% | -0.32% | -0.25% |
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.
