- The Australian Dollar is still facing headwinds as market participants largely anticipate a further rate reduction of 0.25% by the Reserve Bank of Australia in May.
- China’s Foreign Minister, Wang Yi, has stressed the importance of communication in order to de-escalate trade disputes between the United States and China.
- The US Dollar has encountered difficulties due to a decline in investor sentiment related to the uncertain trade strategies of the Trump administration.
The Australian Dollar (AUD) is slightly declining on Tuesday, following a previous session where it increased by over 0.50% against the US Dollar (USD). The AUD/USD exchange rate is falling as the US Dollar strengthens amidst a reduction in global trade anxieties.
US President Donald Trump has indicated a willingness to lower tariffs imposed on China, while Beijing has removed some US products from its 125% tariffs. This action has raised expectations that the extended trade conflict between the world’s two leading economies may be nearing its end. Chinese Foreign Minister Wang Yi stated on Tuesday that yielding ground would only encourage aggressive behavior, underscoring that conversation is crucial for resolving disagreements.
President Trump mentioned that advancements have been made, and he has communicated with China’s President Xi Jinping. However, a representative from the Chinese embassy firmly refuted any ongoing discussions with the US on Friday, declaring, “China and the US are not engaged in any consultation or negotiation regarding tariffs.” The spokesperson implored Washington to “refrain from generating uncertainty.”
