- The Australian dollar is losing the ground after the tariff threats presented by US President Donald Trump.
- AUD faced challenges amid increased risk hatred due to the growing momentum news between Trump’s consultants to implement the tariffs.
- Trump has announced plans to impose a tariff on computer chips, pharmaceuticals, steel, aluminum, and copper to encourage local production.
The Australian dollar (AUD) will continue to decrease the second consecutive day against the US dollar (USD) on Tuesday. The weakness of the AUD/USD pair can be linked to the tariff threats presented by US President Donald Trump.
AUD has also faced risk challenges as risk increased due to news related to increased momentum among US President Donald Trump’s advisers to put a 25 % tariff on Mexico and Canada as soon as February 1.
President Trump announced plans on Monday evening to impose a tariff on computer chips, pharmaceuticals, steel, aluminum and copper. The goal is to transfer production to the United States (the United States) and enhance local manufacturing.
Trump also commented on the famous social media application Tiktok, saying: “We will have a lot of people who offer a show on Tiktok.” He stressed his position on limiting China’s involvement, saying: “She does not want China to participate in Tijook.”
The Australian dollar is declined due
- The US dollar index (DXY), which tracks the value of the US dollar against six major currencies, rises to approximately 107.80 at the time of writing this report. Traders are likely to see strong goods orders in the United States, consumer confidence in the conference council, and the Richmond Virus Industrialization Index later on Tuesday.
- Scott Besin, the Treasury Secretary during the Trump era, stated that he aims to provide a new global tariff for American imports, starting from 2.5 %. These definitions may rise to up to 20 %, reflecting Trump’s aggressive position on commercial policies, in line with his campaign speech last year.
- Speaking to the correspondents on the Air Force One Tuesday, US President Donald Trump stated that he wanted to “want customs tariffs” much greater than 2.5 % “, as Treasury Secretary Scott Payet suggested. However, Trump indicated that he had not yet decided the specified tariff levels .
- The United States has gained power amid uncertainty about the influence of trade and immigration policies of US President Donald Trump. This Federal background (Fed) may encourage a cautious position to reduce interest rates this year.
- According to the S& PLOBAL data, which was released on Friday, the US Participants Index fell to 52.4 in January from 55.4 in December. The Index of Manufacturing Manager rose to 50.1 in January, bypassing the previous reading of 49.4 and exceeding 49.6 expectations. However, the information managers index fell to 52.8 in January from 56.8 in December, less than 56.5 expected.
- However, Trump said on Thursday that he wanted the Federal Reserve to reduce interest rates immediately. “With the drop in oil prices, I will request low interest rates immediately, and likewise it must decrease all over the world,” Trump said at the World Economic Forum in Davos, Switzerland.
- The US dollar faced challenges as Trump’s statements came against the FBI’s monetary policy meeting scheduled for January 28 and 29, with expectations that the US Central Bank will retain rates.
- Traders expect that the Federal Reserve will maintain its price overnight in a range of 4.25 % -4.50 % at its meeting in January. Moreover, Trump’s policies can push the pressure of inflation, which limits the federal reserve to a reduction in another price.
- The Chinese Nbs Manufacturing Manager Index fell to 49.1 in January, a decrease from 50.1 in December, and the loss of the market expectation of 50.1. Likewise, the NBS non -manufacturer’s index fell to 50.2 in January, compared to the reading of December 52.2. As close commercial partners, Chinese economic performance greatly affects the Australian economy.
- The Australian dollar also failed to obtain support from new stimulus measures in China to enhance the development of investment products in indicators, which is its last effort to revive the sick stock market. The Chinese Securities Regulatory Committee (CSRC) approved the second round of long -term investment experimental programs worth 52 billion yuan ($ 7.25 billion).
- Industrial profits in China decreased by 3.3 % year on an annual basis to 7,431.05 billion chips in 2024, as it decreased from the decline by 4.7 % recorded in the first 11 months of the year. This represents the third consecutive year of shrinkage, after a decrease of 2.3 % in 2023. Continuous contraction reflects the ongoing economic challenges, including poor demand, high shrinkage pressure, and a long ride in the real estate sector.
Technical Analysis: Australian dollar tests for 14 days EMA near 0.6250
AUD/USD pair is trading near 0.6260 on Tuesday, confined to an upward channel on the daily chart, hinting to a possible bias. The 24 -day relative indicator (RSI) is placed on a 50 mark, indicating the presence of neutral market morale.
The AUD/USD pair tests immediate support on the 14 -day SIA moving average (EMA) 0.6256. Additional support near the bottom border of the channel lies around 0.6250.
With regard to resistance, AUD/USD husband can test EMA for nine days at 0.6266, followed by the main psychological level of 0.6300. The ultimate break can enhance the bullish bias and lead to the targeting of the upper limits of the channel around 0.6360.
Aud/USD: Daily Chart
Australian dollar price today
The table below shows the percentage of change in the Australian dollar (AUD) against the main currencies listed today. The Australian dollar was the weakest against the US dollar.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | 0.51 % | 0.34 % | 0.62 % | 0.12 % | 0.45 % | 0.47 % | 0.37 % | |
| euro | -51 % | -18 % | 0.10 % | -0.39 % | -07 % | -05 % | -0.15 % | |
| GBP | -0.34 % | 0.18 % | 0.31 % | -0.21 % | 0.08 % | 0.12 % | 0.03 % | |
| JPY | -62 % | -0.10 % | -0.31 % | -52 % | -0.20 % | -0.20 % | -0.28 % | |
| CAD | -0.12 % | 0.39 % | 0.21 % | 0.52 % | 0.33 % | 0.34 % | 0.24 % | |
| Aud | -0.45 % | 0.07 % | -08 % | 0.20 % | -0.33 % | 0.01 % | -08 % | |
| Nzd | -0.47 % | 0.05 % | -0.12 % | 0.20 % | -0.34 % | -01 % | -0.10 % | |
| Chf | -37 % | 0.15 % | -0.03 % | 0.28 % | -0.24 % | 0.08 % | 0.10 % |
The heat map shows the percentage changes in the main currencies against each other. The basic currency is chosen from the left column, while the quotation currency is chosen from the top row. For example, if you choose the Australian dollar from the left column and move along the horizontal line to the US dollar, the percentage offered in the box will represent AUD (Base)/USD (Quote).
Questions and answers in Australian dollars
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 resource -rich country, the other main engine is the largest export price, iron ore. The health of the Chinese economy, and the largest commercial partner, is a factor, as well as inflation in Australia, the rate of growth and trade is a balance. Market morale-whether investors are eating more risky assets (risk) or searching for safe materials (risk)-is also a worker, with positive risks for AUD.
The Australian Reserve Bank (RBA) affects the Australian dollar (AUD) by determining the level of interest rates that Australian banks can persuade each other. This affects the level of interest rates in the economy as a whole. The main goal of RBA is to maintain a stable inflation rate of 2-3 % by setting interest rates up or down. Relatively high interest rates are supported compared to other main central banks, and relatively low vice versa. RBA can also use and tighten quantitative dilution to influence credit conditions, with previous AUD negative and positive to AUD.
China is the largest commercial partner in Australia, so the health of the Chinese economy is a major impact on the value of the Australian dollar (AUD). When the Chinese economy does a good job, it buys more raw materials, commodities and services from Australia, raising the demand for AUD, and raising its value. The opposite is the case when the Chinese economy does not grow at the speed available. Positive or negative surprises in Chinese growth data, therefore, they often have a direct impact on the Australian dollar and its wives.
Iron Ore is the largest export in Australia, as it represents 118 billion dollars annually according to data from 2021, with China as its main destination. Therefore, the price of iron ore can be an engine for the Australian dollar. In general, if the price of iron ore rises, the AUD also rises, as the total demand for the currency increases. The opposite is the case if the price of iron ore decreases. Iron ore prices also tend to increase the possibility of a positive commercial balance for Australia, which is also positive for AUD.
The commercial balance, which is the difference between what a country gains from its exports in exchange for what it pays to its imports is another factor that can affect the value of the Australian dollar. If Australia produces very required after exports, its currency will obtain a value of the excess demand created from foreign buyers who seek to buy its exports in exchange for what it spends to buy imports. Therefore, the positive net trade balance enhances AUD, with the opposite effect if the trade balance is negative.
