The Australian Dollar (AUD) maintained its strength following the release of China’s March trade data. The Chinese trade balance registered a surplus of $102.64 billion, surpassing both the previous figure of $170.51 billion and the anticipated $77 billion. Concurrently, the US Dollar (USD) faced downward pressure due to softening economic indicators and dovish commentary from the Federal Reserve. The AUD/USD pair experienced upward movement, bolstered by improved risk appetite following an announcement from the US President regarding less stringent tariffs on specific Chinese imports. These goods will remain subject to existing tariffs related to fentanyl, rather than previously suggested higher duties. Elevated commodity prices further supported the AUD. However, ongoing trade tensions between the United States and China continue to present a headwind, particularly given Australia’s significant reliance on Chinese demand. In Chinese Yuan (CNY) terms, the March trade surplus reached CNY 736.72 billion, a considerable increase from the prior CNY 122 billion.
