The Australian Dollar has maintained its strength following the release of Chinese import-export data on Monday. China’s March Trade Balance registered at $102.64 billion, surpassing the anticipated $77 billion, although lower than the previous $170.51 billion. Concurrently, the US Dollar is facing downward pressure due to softening economic indicators and dovish commentary from the Federal Reserve. The AUD/USD pair experienced gains, bolstered by improved risk appetite following President Trump’s announcement of less stringent tariffs on specific Chinese imports. These goods will be subject to existing 20% tariffs related to fentanyl, rather than the previously considered 145% duties. Elevated commodity prices further supported the Australian Dollar. However, ongoing trade tensions between the United States and China continue to present a headwind, particularly given Australia’s significant reliance on Chinese demand and exports. In Chinese Yuan terms, China’s March Trade Balance significantly increased to CNY 736.72 billion, a substantial rise from the previous CNY 122 billion.
