Australian Dollar Gains as Greenback Weakens
On Wednesday, the Australian dollar rose above $0.648, marking its second day of gains as the US dollar weakened in response to milder-than-anticipated US inflation figures. This uptick was further bolstered by improved global trade sentiment after the US and China agreed to reduce tariffs over a 90-day period, a move that alleviated concerns of extended economic pressure and boosted commodity prices. Given Australia's significant export dependency on China, especially in raw materials, the local currency remains highly responsive to US-China trade relations. Domestically, recent data presented a mixed economic picture, with Australian wage growth exceeding expectations in the first quarter, while home loan approvals saw a decline. Looking forward, the Reserve Bank of Australia is widely anticipated to lower interest rates by 25 basis points at its upcoming meeting, as it seeks to sustain growth amidst international uncertainties.
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