The Australian Dollar experienced downward pressure as Australian employment data revealed a rise in the Unemployment Rate to 4.1% in March, marginally below the anticipated 4.2%. Employment Change registered at 32.2K, falling short of the projected 40K. Concurrently, the US Dollar benefited from robust consumer spending figures for March. The AUD/USD pair declined, ending a six-day period of gains. Global risk sentiment provided limited support to the AUD following exemptions announced by the US President on proposed tariffs for key technology products, primarily benefiting Chinese-produced goods, a significant market for Australian commodities. Market caution persists due to ongoing uncertainties surrounding US trade policy, including potential tariffs on semiconductors and pharmaceuticals. Domestically, the Reserve Bank of Australia’s April meeting minutes indicated continued uncertainty regarding the timing of future interest rate adjustments.
