The Australian Dollar (AUD) remains under pressure against the US Dollar (USD) for the second consecutive day on Thursday, as risk-off sentiment rises amid concerns over impending US auto tariffs. The AUD/USD pair weakened following President Donald Trump's decision late Wednesday to impose a 25% tariff on auto imports, further escalating global trade tensions. The tariffs are set to take effect on April 2, with collection beginning the following day.
President Trump suggested plans on Wednesday to impose tariffs on copper imports within weeks, although the Commerce Department initially had until November 2025 to decide on the matter. This development, however, provided some support for the AUD, as Australia is a key Copper exporter, and the potential tariff move lifted commodity prices.
The AUD could find further support as investors expect the Reserve Bank of Australia (RBA) to keep interest rates steady next week. This past February, the RBA made its first 25-basis-point rate cut in four years.
RBA Assistant Governor (Economic) Sarah Hunter reiterated the central bank's cautious approach to further rate cuts, with February's policy statement signaling a more conservative stance than market expectations, particularly in response to US policy shifts and their impact on Australia's inflation outlook.
Source : FXStreet
