The Australian Dollar (AUD) halted its three-day losing streak against the US Dollar (USD) on Wednesday, supported by comments from US President Donald Trump suggesting a willingness to negotiate with trade partners.
Trump's remarks boosted optimism for a potential easing of global trade tensions.
The AUD faced headwinds as market volatility remains elevated after the US imposed an expected additional 50% tariff on Chinese imports, particularly as Australia maintains strong economic ties with China. Beijing denounced Trump's latest threat as "blackmail" and vowed to safeguard its interests.
China's top leaders are expected to meet as early as Wednesday to discuss strategies for stimulating the economy and stabilizing capital markets.
The meeting comes amid an intensifying trade war with the US, per Reuters.
Australia's economic outlook remains fragile, with both business and consumer confidence subdued.
The soft data has reinforced expectations of a more dovish stance from the Reserve Bank of Australia (RBA), with markets now pricing in up to 100 basis points in rate cuts this year—starting in May, with further reductions likely in July and August.
Source: FXStreet
