The Australian dollar (AUD) held steady against the US dollar (USD) on Thursday (23/1), as market concerns eased after news that China-specific tariffs proposed under US President Donald Trump's revised plan were much smaller than previously expected. The development helped calm investor concerns, especially given the strong trade ties between China and Australia, which make the Australian market sensitive to changes in China's economic landscape.

President Trump announced plans to impose 10% tariffs on Chinese imports from February 1, citing concerns over fentanyl shipments from China to Mexico and Canada, according to Reuters. In response, Chinese Vice Premier Ding Xuexiang warned on Tuesday of the potential impact of a trade war, stating that there are "no winners" in such a conflict. His remarks came as China braced for possible tariffs under a Trump administration, as reported by CNBC.

The S&P/ASX 200 Index fell to near 8,400 on Thursday, driven mainly by a decline in mining stocks as lower commodity prices weighed on the sector. The decline came despite strong gains on Wall Street. Investors remain cautious as they assess the implications of President Trump's policy shift. (AL)

Source: FXstreet