The Australian Dollar (AUD) experienced downward pressure following the release of Chinese economic data and escalating trade tensions. The AUD/USD exchange rate weakened after the United States increased tariffs on Chinese imports, raising concerns given Australia’s significant trade relationship with China. China responded by increasing tariffs on US imports and adding several American firms to its trade blacklist, while also imposing export controls on a number of US companies. China’s Consumer Price Index (CPI) contracted by 0.1% year-over-year in March, a further decline from the 0.7% decrease in February and below market expectations. The Producer Price Index (PPI) also declined, falling 2.5% annually in March, exceeding the previous month’s decline and analysts’ forecasts.
