Australian Dollar Holds Gains After Risk Rally
The Australian dollar maintained its position above $0.61 on Thursday, following a significant rise of over 3% in the previous session. This surge was supported by a substantial rally in risk assets after U.S. President Donald Trump reduced new tariff rates on imports from most U.S. trade partners to 10% for 90 days, allowing time for trade negotiations. This decision notably lowered existing tariff levels on major economies, though Australia remains subject to the baseline 10% tariff. Simultaneously, Trump increased tariffs on Chinese imports to 125% in reaction to Beijing's retaliatory measures, which has cast a shadow over Australia's economic outlook since China is its largest export market. Domestically, there is ongoing uncertainty regarding the Reserve Bank of Australia's future policy direction. Analysts are split concerning the timing of the next interest rate cut, as trade-related risks heavily influence the economic forecast. Currently, markets anticipate a 25-basis point cut in May and approximately 120 basis points of total easing over the year.
The material has been provided by - RobotFX
No comments:
Post a Comment