The Australian Dollar (AUD) experienced a marginal increase following statements from the US President indicating a potential openness to trade negotiations. However, the AUD remains susceptible to volatility due to ongoing trade tensions, particularly the threat of increased tariffs on Chinese imports. Concurrently, the US Dollar (USD) may find support from rising 10-year Treasury yields, reflecting heightened investor demand. The AUD’s recent decline against the USD was halted by the aforementioned comments, which fostered optimism regarding a possible reduction in global trade friction. Despite expressions of interest in tariff negotiations from numerous countries, market instability is anticipated to persist given the potential for further tariff escalations. The AUD remains sensitive to US-China trade dynamics, considering Australia’s significant economic relationship with China.
