The AUD/USD pair extended its decline for the third straight session, trading near 0.6390 during the Asian session on Friday (09/05). The Australian dollar (AUD) remained pressured amid stalled progress in the US-China trade negotiations. Given the close economic ties between Australia and China, any pressure on the Chinese economy is likely to weigh on the AUD.

Beijing is unlikely to ease tariffs ahead of upcoming talks in Switzerland, according to the Global Times—citing the Chinese Embassy in the United States. This has added to market uncertainty and dampened risk sentiment.

In the United States (US), President Donald Trump has taken a tough stance on China's trade policy, following the appointment of a new envoy to Beijing. While there has been talk of tariff exemptions, the administration appears cautious, with Trump stating that they are "not looking for that many exemptions."

Meanwhile, China is reportedly considering significant changes to its real estate market—banning pre-sale of homes and allowing only sales of finished properties. The move, aimed at stabilizing the property sector, is part of a broader reform plan that is still in development. The regulation will apply to future land sales, except for public housing, and local governments will have flexibility in implementing it.

The US Dollar Index (DXY), which measures the US dollar (USD) against a basket of currencies, was trading around 100.60, supported by strong US economic data and expectations of a prolonged yield differential. However, early optimism around a US-UK trade deal has faded, as it became clear that existing 10% tariffs will remain in place. (Newsmaker23)

Source: FXstreet