AUD/USD rises to a new monthly high just below 0.6300, helped by signs that United States (US) tariffs on China may not be as harsh as initially feared. Meanwhile, the US Dollar (USD) recovers slightly from multi-day lows, reflecting ongoing uncertainty regarding future US trade policies. Market participants look forward to the upcoming flash S&P Global PMI numbers for January to gauge broader economic sentiment
Aussie extends gains while markets await fresh drivers
The amount of China-specific tariffs proposed under Donald Trump's revised plan appears significantly smaller than originally anticipated, calming some market nerves.
The US Dollar briefly slumped to a fresh two-week low near 107.75 before staging an intraday rebound, with the Dollar Index (DXY) edging higher.
Traders brace for the US S&P Global PMI for January release on Friday for clues about near-term economic trends.
On the negative tone for the Aussie, the Reserve Bank of Australia (RBA) is considering a potential rate cut at its upcoming February meeting to counter moderate domestic growth and receding inflation.
In addition, the AUD also contends with subdued consumer sentiment, softer commodity performance, and sluggish demand from key trade partner China.(Cay) Newsmaker23

Source: Fxstreet