- The Australian dollar is under pressure as the US dollar strengthens, supported by signs that ease tensions between the US and China.
- China’s move to exempt certain US imports from 125% tariffs has sparked optimism for better trade relations.
- The Federal Reserve is in a power outage ahead of the Federal Open Market Committee meeting on May 7th.
The Australian Dollar (AUD) is extending the losses of Monday’s second consecutive session. AUD/USD pair It is under pressure as the US dollar (USD) strengthens amid signs of loss.
China exempted certain US imports from 125% tariffs on Friday, business sources said. The move has fueled hope that a long-term trade war between the two biggest economies in the world could be coming to an end.
However, Reuters cited a spokesman for the Chinese embassy on Friday, firmly denying current negotiations with the US, saying “China and the US have no talks or negotiations on tariffs.” A spokesperson urged Washington to “stop the outbreak of confusion.”
The AUD is also facing headwinds as expectations are growing that the Reserve Bank of Australia (RBA) will offer a further 25 point rate cuts in May.
As US dollars ease concerns, the Australian dollar falls as the US dollar wins the ground
- The US Dollar Index (DXY), which measures USD against six major currencies, has earned the basis for the second consecutive day, trading at nearly 99.60 at the time of writing. The Federal Reserve is in power outage mode ahead of the Federal Open Market Committee (FOMC) meeting on May 7th.
- US Agriculture Secretary Brooke Rollins said the Trump administration is discussing tariffs with China every day, as Reuters reported. Rollins emphasized that negotiations are underway and trade deals with other countries are “very close.”
- China’s US Chamber of Commerce Chairman Michael Hart said he is encouraging the US and China to see tariffs being reviewed. Hart said the exclusion list for certain categories is reportedly under work, but no official announcements or policies have been made. Both the China Department of Commerce and the US Department of Commerce are currently gathering opinions on the issue.
- The U.S. Department of Labor (DOL) reported on Thursday that initial applications for unemployment benefits for the week ending April 19 had increased. Initial unemployment claims rose to 222,000, slightly above expectations, from the revised figure of 216,000 the previous week. Meanwhile, continued unemployment claims fell 37,000, down to 1.841 million for the week ending April 12th.
- U.S. Treasury Secretary Scott Bescent acknowledged Wednesday that current tariffs, with Chinese goods at 145% and US goods at 125%, are unsustainable and need to drop to launch a meaningful dialogue.
- President Trump’s Chief Economic Adviser, National Economic Council director Kevin Hassett said the US Trade Representative (USTR) is scheduled to hold a 14 meeting with the Minister of Foreign Trade. Hassett also said that 18 written proposals have been received from these ministers. According to Hassett, China continues to be negotiated.
- Westpac predicted on Thursday that the Reserve Bank of Australia (RBA) would cut 25 basis points at its May 20th meeting. The RBA has adopted a data-driven approach in recent quarters, making it difficult to confidently predict its behavior beyond the next meeting.
- Beijing officials on Thursday stressed that “economic negotiations” with the US were not ongoing and that the US would “cancellate all unilateral tariff measures” to pave the way for talks.
- China’s Treasury Ministry said on Friday that global economic growth is still slowing, and tariffs and trade wars continue to undermine economic and financial stability. The ministry urged all parties on a Reuters-by-Reuters basis to strengthen the international economic and financial system through stronger multilateral cooperation.
The Australian dollar remains below 0.6400. Resistance appears near the 9-day EMA
The AUD/USD pair trades about 0.6390 on Mondays, and daily chart It shows bullish prejudice. The pair continues to hold above the nine-day exponential moving average (EMA), but the 14-day relative strength index (RSI) is firmly above the 50 level, suggesting sustained upward momentum.
Conversely, we see immediate resistance of 0.6439 in the last four months, posted on April 22nd. A critical break beyond this level could pave the way for a rally heading towards a five-month high at 0.6515.
Initial support is lined up in a 9-day EMA of 0.6367, followed by stronger support near the 50-day EMA of 0.6305. A sustained drop below these levels could weaken bullish setups and lead to deeper losses, with a low of nearly 0.5914 in March 2020.
AUD/USD: Daily Charts
Australian dollar prices today
The table below shows the rate of change in the Australian Dollar (AUD) for today’s listed major currencies. The Australian dollar was the strongest against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.12% | -0.05% | -0.11% | -0.04% | -0.04% | -0.13% | -0.26% | |
| EUR | 0.12% | 0.01% | 0.00% | 0.06% | -0.02% | -0.02% | -0.16% | |
| GBP | 0.05% | -0.01% | 0.00% | 0.06% | -0.05% | -0.04% | -0.17% | |
| JPY | 0.11% | 0.00% | 0.00% | 0.09% | 0.09% | -1.43% | 0.10% | |
| CAD | 0.04% | -0.06% | -0.06% | -0.09% | -0.13% | -0.10% | -0.21% | |
| aud | 0.04% | 0.02% | 0.05% | -0.09% | 0.13% | 0.00% | -0.13% | |
| NZD | 0.13% | 0.02% | 0.04% | 1.43% | 0.10% | -0.01% | -0.13% | |
| CHF | 0.26% | 0.16% | 0.17% | -0.10% | 0.21% | 0.13% | 0.13% |
The heatmap shows the rate of change of each other’s major currencies. The base currency is selected from the left column, and the estimated currency is selected from the top row. For example, if you select Australian dollars from the left column and move along the horizon to US dollars, the rate of change shown in the box represents AUD (base)/USD (QUOTE).
