- The Aussie is approaching nearly 0.6300 in softer USD.
- Risk sentiment fluctuates as potential mutual tariffs loom between China and the US.
- USD could not capitalize strong PPI data.
The Australian Dollar (AUD) will acquire position against the US Dollar (USD) on Thursday. Despite these benefits, the risk-sensitive OUD has announced that US (US) President Donald Trump will impose mutual tariffs on all countries that charge duties for US imports, making it possible for the world to be a potential global I rise from the fear of a trade war.
Daily Digest Market Movement: Australia holds firmly after brightening US PPI and easing tariff concerns
- Tariffs could be imposed within weeks as Trump's trade and economic teams are studying bilateral tariffs and trade relations.
- The US Dollar Index (DXY) is under pressure to help traders balance headwinds and tailwinds, including the Ukraine-Russia Peace Agreement, US Producer Price Index (PPI) data, and mutual tariffs imposed.
- A stronger than expected PPI figure followed by a knee-leaning US dollar rally, but the currency reversed the course after President Trump and Vladimir Putin agreed to start peace talks with Ukraine.
- Recent workers figures support moderate optimism. U.S. unemployment claims for the week ending February 7th were 213,000, below consensus, with continued claims falling from 1.886 million to 1.85 billion.
- Monthly heading PPI for January was checked at up to 0.4%, exceeding the 0.3% estimate, but below the revised 0.5% in December. Core PPI reached 0.3% as expected.
- On the trade front, Trump has repeatedly posed a 100% tariff threat on BRICS countries, raising issues regarding unchanging tariffs in many countries. He also criticised trade ties between the European Union and the United States, promoting geopolitical uncertainty.
AUD/USD technical outlook: Pairs gain momentum when they exceed a simple moving average of over 20 days
The relative strength index (RSI) stands at 57 in the positive region, rising sharply, indicating an increase in buyer convictions. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator prints flat green bars, reflecting a modest but consistent uptrend.
By holding a 20-day simple moving average firmly, Australians show even more profitable potential, but leaving tariff threats and changing risk sentiment could quickly change current outlook There is.
US-China Trade War FAQ
Generally speaking, a trade war is an economic conflict between two or more countries due to extreme protectionism on one end. That means creating trade barriers such as tariffs. This leads to anti-barrier, escalating import costs and thus causing cost of living.
The economic conflict between the US (US) and China has led President Donald Trump to set trade barriers in China in early 2018, claiming unfair commercial practices and intellectual property theft from Asian giants It started when it did. China took retaliatory action and imposed tariffs on several US goods, including cars and soybeans. Tensions escalated until the two countries signed a US-China-1 trade agreement in January 2020. The agreement required structural reforms and other changes to China's economic regime, pretending to restore stability and trust between the two countries. However, the coronavirus pandemic has focused on the conflict. But it is worth mentioning that President Joe Biden, who took office after President Trump, has even added tariffs and added taxes.
Donald Trump's return to the White House as the 47th US president sparked a new wave of tension between the two countries. During the 2024 election campaign, Trump pledged to impose 60% tariffs on China after taking office on January 20, 2025. Strict policies affecting the global economic situation amidst the disruption of the global supply chain, bringing reductions in spending, particularly investment, and supplying directly to consumer price index inflation.
