AUD/USD attracted buyers on Friday after President Trump suggested a trade agreement with China remains within reach, reinforcing a risk-on mood. The pair advances to 0.6315, heading for its first weekly gain in three weeks. Meanwhile, renewed speculation regarding additional Federal Reserve (Fed) rate cuts in 2025 continues to undermine the US Dollar, providing an added lift to the Aussie.
The Greenback falls to a one-month trough as markets price in the prospect of further Fed easing by year-end. In addition, President Trump's statements about immediate interest rate cuts contribute to the latest downside in the USD.
The Reserve Bank of Australia's (RBA) possible rate cut in February and subdued economic growth might limit the Aussie's upside.
On the US front, the S&P Global Composite PMI decelerates to 52.4 from 55.4, with Manufacturing climbing to 50.1 and Services dipping to 52.8. Analysts note rising optimism in the manufacturing sector, expecting supportive policies under the Trump administration.
The US President signals reluctance to levy tariffs on China, citing that a trade pact could be finalized. He also reiterates grievances about trade deficits with various nations, including Canada, while calling on OPEC to lower crude oil prices.(Cay) Newsmaker23

Source: Fxstreet