- The AUD/USD pair experiences a slight decline, hovering around 0.6390 in the initial hours of Monday’s Asian trading.
- A perceived reduction in trade friction between the United States and China is lending some strength to the US Dollar.
- China has pledged assistance to companies and employees impacted by the imposition of tariffs.
The AUD/USD exchange rate is trading slightly lower, around the 0.6390 mark, in early Monday trading in Asia. The US Dollar (USD) is showing some strength against the Australian Dollar amid indications of reduced tensions between the US and China. Market participants will be paying close attention to China’s press conference on Monday, where policies aimed at stabilizing employment and ensuring consistent economic growth will be discussed.
The US Dollar saw its first weekly increase since the middle of March on Friday, following China’s decision to provide tariff waivers on certain goods imported from the US. This development has fueled optimism that the trade dispute between the world’s two leading economies may be approaching a resolution. On Friday, China exempted a selection of US imports from its 125% tariffs, according to reports from businesses, although China quickly refuted US President Donald Trump’s claim that negotiations were actively taking place between the two nations.
The Politburo’s statement on Friday emphasized domestic stability through support for businesses and workers most vulnerable to the effects of US tariffs. The National Development and Reform Commission, the Ministry of Human Resources and Social Security, the Ministry of Commerce, and the People’s Bank of China (PBOC) are scheduled to jointly host the conference on Monday.
