- The Australian Dollar is still facing headwinds as market participants anticipate a further 25-basis-point reduction in interest rates by the RBA in May.
- China’s Foreign Minister, Wang Yi, stressed the importance of communication as a means to de-escalate trade disputes between the US and China.
- The US Dollar faced challenges as investor sentiment waned, influenced by the perceived uncertainty of trade strategies from the Trump administration.
The Australian Dollar (AUD) is slightly weaker in trading today, following a gain of over 0.50% against the US Dollar (USD) in the prior trading day. The AUD/USD currency pair is declining as the US Dollar strengthens amid a decrease in global trade anxieties.
US President Donald Trump indicated a willingness to lower tariffs on Chinese goods, while Beijing removed some US products from its 125% tariff list. 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 discussion is vital for resolving disagreements.
President Trump indicated that advancements have been made, and he has communicated with China’s President Xi Jinping. However, a representative from the Chinese embassy on Friday refuted any ongoing discussions with the US, asserting, “China and the US are not engaged in any consultation or negotiation regarding tariffs.” The spokesperson called on Washington to “refrain from generating ambiguity.”
