Australian Dollar strengthens following Trump's comments on tariffs on China – FXStreet

• Australian dollars will expand their profits following Trump's optimism for China.
• PBOC maintained interest rates to 2.00 % and injects 200 billion yuan into financial institutions through a year MLF.
• President Trump called for the US Federal Reserve to reduce interest rates.

The Australian dollar (AUD) has been gaining upwards for US dollars (USD) for three consecutive sessions on Friday. The Aud/USD pair has been enhanced because the US President Donald Trump expressed optimism, stating that “it is not necessary to use tariffs in China” and expects to reach transactions. 。 Trump's remarks occurred on Thursday after a conversation with President Xi Jinping, suggesting a potential progress in trade negotiations between the United States and China.

According to Reuters, the People's Bank of China (PBOC) maintained an interest rate of 2.00 % and injected 270 billion yuan (MLF) through a one -year medium -term lending facility (MLF).

The Australian Bank of Judo Bank of Judo Purchase Manager Index (PMI) rose to 50.3 in January and rose from 50.2 in December. This was marked four times in a row, due to the growth of the service sector while the production output was stable.

The Judo Bank Manufactured PMI rose from 47.8 in December to 49.8 in January, and the best reading in 12 months has been broken for 13 consecutive months. However, the service PMI has dropped from 50.8 to 50.4, reaching a six -month low, indicating a slowdown in sector growth.

Traders may monitor the release of the S & P Global Purchasing Manager Index (PMI) and the Michigan consumer centement index in January.

Australian dollars can be grateful for asking Trump to supply interest rates.

• The US dollar index (DXY), which tracks the US dollar performance for six major currencies, maintains more than 108.00 positions at the time of writing.
• Thursday late, Trump said that the US Federal Preparatory System (Fed) hoped to reduce interest rates immediately. “When crude oil prices fall, the interest rate will soon drop, and they should also fall around the world,” said Trump in the Davos, Switzerland.
• The US dollar may face Trump's remarks before the Federal Preparatory System (FRB) monetary policy meeting scheduled for January 28 and 29, and the Central Bank of the United States is stable. It is expected to maintain the rate.
• Traders hope that the Fed will stabilize the benchmark overnight rate in the January meeting of 4.25 % to 4.50 %. In addition, Trump's policy can promote inflation pressure, and may limit the Fed to another interest rate reduction.
• Chinese authorities have introduced some measures on Thursday to stabilize the stock market. This has allowed the pension fund to increase investment in domestic shares. The pilot scheme, for which insurance companies can purchase shares, will start on a initial scale of at least 100 billion yuan in the first half of 2025. Meanwhile, the People's Bank of China (PBOC) stated that “expanding the scope and expanding the size of fluid tools to provide funds for stock purchases at the right time.”

Technical analysis: Australian dollars remain less than 0.6300 in the rising channel

The Aud/USD pair is about 0.6280 on Friday, and daily chart analysis shows the movement in the channel pattern in the ascending order, suggesting potential bullish bias. In addition, the 14 -day relative strength index (RSI) remains over 50 and has strengthened positive market emotions.

Conversely, the Aud/USD pair can test the psychological resistance level at 0.6300, and the next target is near the upper boundary of the rising channel around 0.6330.

The first support is the 0.6252 9 -day index transfer average (EMA), and the EMA for 14 days is displayed at 0.6244. The lower limit of 0.6230 of the rising channel has more powerful support, and is further supported by psychological level 0.6200.

Aud/USD: Daily chart