Friday, 01 August 2025
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Australian Dollar Weakens As Traders Eye US-China Tariff Situation
Wednesday, 5 February 2025 13:16 WIB | AUD/USD | AustraliaAUD/USD,

The Australian dollar (AUD) weakened against the US dollar (USD) amid rising risk aversion amid growing concerns over US-China trade tensions. The AUD/USD pair failed to gain support from the Judo Bank Purchasing Managers' Index (PMI) released on Wednesday.

The Judo Bank Australia Composite PMI rose to 51.1 in January from 50.2 in December, reflecting modest growth in private sector activity. Meanwhile, the Judo Bank Services PMI rose to 51.2 from 50.8, marking the twelfth straight month of expansion in the services sector. Despite the modest growth, it was the strongest since August.

The AUD may depreciate further amid increasing likelihood that the Reserve Bank of Australia (RBA) could consider a rate cut in February. The RBA has kept the Official Cash Rate (OCR) at 4.35% since November 2023, stressing that inflation must "sustainably" return to its 2%-3% target range before any policy easing.

The Australian dollar faces challenges as market volatility remains a concern as investors eye the ongoing trade war between the United States (US) and China, Australia's main trading partner. China has retaliated with new US tariffs of 10% that came into effect on Tuesday. However, Trump said on Monday afternoon that he would likely speak to China in the next 24 hours. He also warned, "If we can't get a deal with China, the tariffs will be very, very large."

Source: FXStreet

RELATED NEWS
Australian Dollar holds ground following release of Retail Sales, China's PMI data ...
Thursday, 31 July 2025 09:49 WIB

The Australian Dollar (AUD) appreciates on Thursday, halting its five-day losing streak. The AUD/USD pair maintains its position following the release of key economic data from Australia and its close...

Aussie Dollar Holds Ground Despite Softer Inflation Print ...
Wednesday, 30 July 2025 09:31 WIB

The Australian dollar edged higher to above $0.651 on Wednesday, ending its four-session losing streak, as a weaker US dollar outweighed soft domestic inflation figures. The greenback eased ahead of t...

Australian Dollar steadies amid improved market sentiment, eyes on US-China trade talks ...
Monday, 28 July 2025 09:53 WIB

The Australian Dollar (AUD) maintains its position on Monday, after registering losses in the previous two sessions. The AUD/USD pair gained ground following the announcement of a newly established tr...

Aussie Dollar Extends Fall, Still on Track for Weekly Gain ...
Friday, 25 July 2025 09:13 WIB

The Australian dollar fell to around $0.658 on Friday, extending losses from the previous session as investors remained cautious ahead of key inflation data due next week. Both monthly and quarterly i...

Australian Dollar Rallies to 8-Month High ...
Thursday, 24 July 2025 08:59 WIB

The Australian dollar strengthened to around $0.661 on Thursday, extending its five-session rally to hit its highest level since November last year, fueled by optimism over latest global trade develop...

LATEST NEWS
Swiss Franc steadies as markets eye US tariff deadline, SNB reports major FX losses

The Swiss Franc (CHF) steadies against the US Dollar (USD) on Thursday, snapping a six-day losing streak as investors rotate back into the Franc amid renewed safe-haven demand. The cautious tone in markets comes ahead of the looming US tariff...

EUR/USD consolidates losses following German CPI, with US PCE Inflation on tap

The EUR/USD pair is posting marginal gains on Thursday, following a sharp sell-off over the last three days. The pair extended its decline on Wednesday following a hawkish message from the Federal Reserve (Fed), and remains on the defensive after...

Gold price rebounds ahead of NFP despite firm USD, Fed hold

Gold prices recovered on Thursday after the Federal Reserve (Fed) held rates unchanged, as the August 1 trade deadline imposed by US President Donald Trump looms. The Greenback remains steady on a tranche of good economic data, though the XAU/USD...

POPULAR NEWS
European Equities Rise in Tuesday Trading; Novo Nordisk Falls 23% on Q2 Results, 2025 Outlook
Wednesday, 30 July 2025 00:36 WIB

European stock markets closed higher in Tuesday trading as the Stoxx Europe 600 was up 0.33%, Germany's DAX climbed 1.03%, the FTSE 100 gained...

EU and U.S. Strike Metals Deal to Tackle Chinese Overcapacity
Tuesday, 29 July 2025 09:36 WIB

The European Union and the U.S. will form a "metals alliance" to counter the impact of subsidised Chinese production on global markets, as part of...

S&P 500 and Nasdaq 100 Hit Records
Tuesday, 29 July 2025 22:28 WIB

US stocks maintained modest gains on Tuesday (July 29) as the market digested a series of earnings reports ahead of key economic developments. The...

Dow Jones Industrial Average grapples with direction ahead of heavy week
Tuesday, 29 July 2025 04:12 WIB

The Dow Jones Industrial Average (DJIA) tested all-new record highs early Monday, clipping into the high side in early trading before the weight of...