AUD/USD is off the five-year low but remains heavy near 0.6000 in the Asian session on Monday. The pair continues to suffer from a US-China trade war as US President Trump said that he would not do a deal with China until the US trade deficit was sorted out.
Analysts at ANZ Bank expect the RBA to cut interest rates in all the next three policy meetings in May, July, and August. Additionally, the bank also sees the possibility of a larger-than-usual interest rate cut of 50 basis points (bps) in May if global growth deteriorates significantly.

In addition to bloating RBA dovish bets, fears of a potential trade war between the US and China have also weighed on the Australian Dollar (AUD). During European trading hours on Friday, Beijing threatened to impose additional tariffs of 34% on all US imports from April 10 as a countermeasure to Trump's reciprocal tariffs announced on Wednesday.

Escalating concerns over the surrendering Chinese economic outlook weighs on the Aussie dollar, given that Australia relies significantly on its exports to China.

Meanwhile, the US Dollar (USD) strives to gauge support due to comfort from upbeat Nonfarm Payrolls (NFP) data for March after surrendering its intraday gains. The US NFP report showed that the economy added 228K fresh workers, significantly higher than estimates of 135K and the former reading of 117K, downwardly revised from 151K. The Unemployment Rate accelerated to 4.2% against estimates and the prior release of 4.1%.

Average Hourly Earnings, a key measure of wage growth, rose moderately by 3.8% year-on-year compared to expectations of 3.9% and the former reading of 4%.

Source: Fxstreet